 Demand for new homes to rise
Construction of new homes had slowed dramatically in 2008 but now is set to rise considerably during 2009-10.
According to data from the Housing Industry Association State and National Outlook report the construction of new homes in Victoria is expected to jump 9% in 2009-10 to a total of 41,863 from 38,263 forecasted for 2008-09.
Factors such as lower interest rates and the effect of two Federal Government stimulus packages are thought to be behind the improvement and these latest figures will be welcome news to the building industry.
The report which was released today also forecasts that by 2010-11, housing starts will rise another 6%, to 158,100. Nationally, housing construction is expected to stage a "moderate" recovery next year, the report said. "The First Home Owners Boost, mortgage rates at a forty year low, and the housing components of the Federal Government's Nation Building and Jobs Plan have the capacity to deliver a moderate recovery in residential activity," said HIA chief economist Harley Dale in a statement.
A shortage of homes in Victoria highlights the State Government's need to fast-track building projects and release land for development quickly, said HIA's acting Victorian executive director Robert Harding.
However, despite positive forecasts, the number of new homes is still expected to mark a decline 8% over the previous year, the association said.
Join the discussion on Building & Construction
|