No property slow-down in sight with the Australian Bureau of Statistics (ABS) reporting new home starts rose to record highs last year and Commsec predicting further strength in New South Wales.
New home starts hit record highs
Official data has shown home starts have lifted to levels not seen since records began in the 1980s. The ABS reports dwelling starts increased 12.5 per cent over the quarter to a record high of 52,380. Houses were up 0.8 per cent, apartments were up 31.3 per cent. The Housing Industry Association says there is little surprise activity reached a new record with the four largest states, New South Wales, Victoria, Queensland and Western Australia, all recording their strongest quarters on record for multi-unit dwelling commencements at the same time.
NT economy joins NSW as best performing
CommSec's State of the States report shows New South Wales has maintained its top position for economic performance but was joined by the Northern Territory, pushing Western Australia to third place. The report placed Victoria and Queensland in the next grouping, with the ACT overtaking South Australia into sixth spot and Tasmania ranking eighth.
Commsec’s quarterly report considers economic performance based on eight indicators including economic growth; retail spending; equipment investment; unemployment; construction work done; population growth; housing finance and dwelling commencements.
Outlook for property growth across Australia
FNN asks Commsec’s Chief Economist Craig James about the reports’ findings and which states or territory may be poised for further strength this year:
“I think we’re going to see a strong year for New South Wales. The set up is in terms of dwelling starts and housing finance, and of course the level of demand in New South Wales, that it is going to be a strong year for the housing sector.
There are a degree of encouragement in Queensland where the number of [housing] starts were at six-year highs in the September quarter. And, we’ve got record dwelling starts in places like Western Australia. Also a degree of hope in terms of the Tasmanian market where dwelling starts have seen the strongest growth in a decade.”
Commercial property acquisitions
Stockland Limited (ASX:SGP)
has outlined plans for a $4.6 billion master-planned residential community development called Cloverton and located north of Melbourne.
The property developer has also purchased a zoned site at Clyde North, south east of Melbourne, where it plans to build a $128 million master-planned community.
Real estate investor DEXUS Property Group (ASX:DXS)
has tied up the $153.5 million acquisition of Lakes Business Park south of Sydney’s CBD.
Property investor Aspen Group Limited (ASX:APZ)
has spent $7.4 million to purchase residential village called Four Lanterns Estate in south-west Sydney.