The HIA released it Autumn 2015 National Outlook report earlier this month, which showed the current strength and weaknesses of Australia’s construction centre.
“The HIA Autumn 2015 National Outlook shows new housing construction is at record levels and is single-handedly propping up Australia’s domestic economy,” HIA chief economist Dr Harley Dale said.
“On-going momentum in 2015 is narrowly driven compared to last year, in terms of both geographical area and dwelling type - it’s far from a universally strong story.”
While the number of new dwellings under construction is at record levels, Dr Dale would like to see more done to allow people to enter the market.
“It is disappointing that despite record new housing supply, many Australians are being priced out of the market due to the excessive and inefficient taxation and regulation governments’ impose on the new housing sector,” Dr Dale said.
“Super low interest rates are doing their job, but there is a lack of complimentary policy reform.”
The HIA’s State by State Breakdown:
NEW SOUTH WALES
• Dwelling starts in New South Wales are projected to increase by 18.2% during 2014/15 to a 20 year high of 54,680.
• Starts are forecast to decline by 9.1% in 2015/16, with a further reduction of 8.6% taking the level to 45,440 in 2016/17.
• Renovations activity in NSW is projected to increase by 2.6% in 2014/15 and by a further 6.5% in 2015/16. This would bring the value of the state’s renovations market to $8.32 billion.
QUEENSLAND
• Dwelling starts in Queensland are projected to increase by 18.8% in 2014/15 to a level of 42,268.
• Starts are forecast to ease by 0.8% in both 2015/16 and 2016/17, reaching a level of 41,577.
• Renovation activity in Queensland is projected to remain flat in 2014/15, but then increase by 3.7% in 2015/16. This would bring the value of the state’s renovations market to $6.69 billion.
VICTORIA
• Dwelling starts in Victoria are projected to increase by 15% in 2014/15 to a level of 59,805.
• Starts are forecast to drop by 16.5% in 2015/16, with a further reduction of 6.4% taking the level down to 46,732 in 2016/17.
• Renovation activity in Victoria is projected to drop by 9.9% in 2014/15 and hold steady in 2015/16. This would bring the value of the state’s renovations market to $6.70 billion.
SOUTH AUSTRALIA
• Dwelling starts in South Australia are projected to fall by 1.4% in 2014/15 to a level of 10,565.
• Starts are forecast to drop by 10.6% in 2015/16, before growth of 4.4% in 2016/17 takes activity to a level of 9,852.
• Renovations activity in South Australia is projected to fall by 5.4% in 2014/15 and by a further 8.3% in 2015/16. This would bring the value of the state’s renovations market to $1.69 billion, from over $2.0 billion five years ago.
WESTERN AUSTRALIA
• Dwelling starts in South Australia are projected to fall by 1.4% in 2014/15 to a level of 10,565.
• Starts are forecast to drop by 10.6% in 2015/16, before growth of 4.4% in 2016/17 takes activity to a level of 9,852.
• Renovations activity in South Australia is projected to fall by 5.4% in 2014/15 and by a further 8.3% in 2015/16. This would bring the value of the state’s renovations market to $1.69 billion, from over $2.0 billion five years ago.
NORTHERN TERRITORY
• Dwelling starts in the Northern Territory are projected to fall by 6.7% in 2014/15 to a level of 1,880.
• Starts are forecast to drop by a further 10% in 2015/16, before growth of 12.9% in 2016/17 takes activity to a level of 1,909.
• Renovations activity in the Northern Territory is projected to increase by 22.8% in 2014/15 and by a further 4.8% in 2015/16. This would bring the value of the territory’s renovations market to $278 million
TASMANIA
• Dwelling starts in Tasmania are projected to jump by 25.5% in 2014/15 to a level of 2,407.
• Starts are forecast to decline by 6.9% in 2015/16 and by a further 4% in 2016/17, taking the level to 2,151.
• Renovations activity in Tasmania is projected to drop by 12.4% in 2014/15 and by a further 2.9% in 2015/16. This would bring the value of the state’s renovations market to $591 million.
