Home builders in Australia will be delighted with the news that there is an increase of the forecast in house building. Building of new homes in Australia is set to grow at 7.7 percent this year according to the latest report from the Housing Industry Association. Home builders have been enjoying a fair share of revenue in the booming industry in the Australian soil.
This might be a positive outlook for the year, however, on another end, the Housing Industry Association also forecasted that after three years of consecutive strong growth in the industry, it is expected that the figure will decline by 5.7% in 2016 and will plunge further down by 4.7 percent in 2017.
From the national perspective of investment in renovations, the Housing Industry Association pointed out that this niche in the industry continue to disappoint in that it only grew by about .5 percent in 2014 coming from a decade bottom. The growth in renovation activities across the country is set to increase only by .2 percent in 2015. On a more positive note, the report did suggest that the momentum in the renovations sector will build up in the coming years. In 2016, it is expected that renovation projects will increase by 2.8 percent and will be followed by a significant growth in 2017 by 3.2 percent. The projected total amount of renovations will total to at least $30.3 billion.
On the other hand, data coming from the Australian Bureau of Statistics is quite promising in that prices of houses continue to rise at a very sustainable rate during the quarter ended December 2014. The growth was up by 1.9 percent compared to the previous quarter.
In the same period but 12 months earlier, the statistics would show that home prices were up by 6.8 percent then. The established home prices increased by 7 percent last year. The other dwelling spaces grew by 6.1 percent.
Last year or in 2014, building of new homes reached its highest level per record. This news was a crucial factor in assisting the affordability in housing plans and also gave support for demand in the Australian economy.