HOUSING AND APARTMENT STARTS TO HIT HIGHEST LEVEL SINCE 1994: HIA
According to the Housing Industry Association, more new houses and apartments will be started this year than in any 12 months since 1994.
2014 will have the second highest number of new starts on record, with over 18,000 new homes being started. The HIA’s national outlook for autumn and winter points not only to the strength of the recovery in housing but also to fundamental changes in the construction market.
With the consistent flow of dwelling projects in Sydney and Melbourne, 44 per cent of the new apartment starts are multi-units compared with 32 per cent 10 years ago. The HIA notes that the growth in multi-unit starts is slowing while work on traditional detached housing slowing picks up the pace. HIA predicts apartment starts will drop back down to 36 per cent by 2016-17.
Leading the current recovery is NSW with approximately 49,000 new starts an increase of 21.9 per cent. However HIA has predicted Victoria will have 47,926 starts, although this is a drop of 5.9 per cent to the lowest level of starts in the past five years.
Taking a look at the other states, Queensland will have a total of 36,335 new starts for 2013-14, an increase of 24.0 per cent compared to the highest level in six years. With Western Australia also increasing by 14 per cent with 27,852 new starts.
HIA warned that this seasonal recovery masked obstacles to Australia successfully housing its growing and ageing population over the next 20 years, with HIA chief economist Harley Dale stating, there was already a shortage of skilled labour and titled residential land within the two strongest new home building markets – Sydney and Perth.
Australia will need an average of 180,000 new dwelling started each year if the country is to sufficiently house the growing population, in comparison to an average of 155,000 new starts over the last 20 years.
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