A Record Year Of House Building
Kanebridge News
Share Button

A Record Year Of House Building

Australia is poised to set a new record for detached homebuilding in 2020/21.

By Terry Christodoulou
Thu, May 20, 2021Grey Clock < 1 min

According to economists at the Housing Institute of Australia (HIA), a record number of detached housing starts will occur in the 12 months to September 2021.

More than 146,000 detached houses commencing construction. This is more than 20 per cent higher than the peak of the previous boom in 2018,” stated HIA Economist, Angela Lillicrap.

This forecast is contained in HIA’s economic and industry Outlook Report. The State and National Outlook Reports include updated forecasts for new home building and renovations activity for Australia and each of the eight states and territories.

“This large volume of work will ensure that the industry remains very active through until at least the second half of 2022,” added Ms Lillicrap.

Ms Lillicrap cites a number of factors driving the level of activity, namely, the HomeBuilder scheme and low-interest rates, as well as consumer preferences shifting away from high-density areas.

“The extension of HomeBuilder’s commencement deadline will help limit the impact of constraints imposed by land, labour and materials and ensure the elevated volume of detached homes will be sustained for longer.”

However, the increase in building is not something that is shared between the detached and multi-unit sector, the latter expecting a decline in 2020/21.

“The timing and speed of a recovery in overseas migration will have a significant impact on these forecasts.

The return to stable and certain population growth is central to stable economic growth,” concluded Ms Lillicrap.

MOST POPULAR

Interior designer Thomas Hamel on where it goes wrong in so many homes.

Following the devastation of recent flooding, experts are urging government intervention to drive the cessation of building in areas at risk.

Related Stories
By Kanebridge News
Thu, Aug 11, 2022 < 1 min

New research from Knight Frank’s International Waterfront Index shows waterfront properties are costing more than double their inland counterparts in Sydney while in Melbourne waterside properties attract a 40% premium.

Australia’s coastline attracts some of the highest waterfront premiums in the world with Sydney topping the index — an average premium of 121% — compared to an equivalent home set away from the water.

Auckland ranked second on the list of 17 international locations — a premium of 76%. The list saw Gold Coast (71%), Perth (69%) and the Cap d’Antibes (59%) on the French Riviera round out the top 5.

Australia continued to feature prominently in the research with Brisbane’s waterfront premium coming in at 55%, with Melbourne also in the top 10 at 39%.

According to Knight Frank Australia’s head of residential research, Michelle Ciesielski, there has always been strong appetite for Sydney’s waterfront homes.

Australia’s luxury residential market has advanced, it lacks the depth of prestige markets in more established global cities said Cieselski.

“As a result, our Australian cities can achieve a significantly higher premium on the waterfront compared to a similar property inland without access to, or a view of, water,” she said.

“Also, Australia is known for its balmy outdoor lifestyle, so many buyers in this super-prime space are willing to pay a premium to secure the ideal position along the waterfront.”

The data also suggests that beachfront homes were most desirable, commanding a premium of 63% compared to harbour locations fetching 62% premium and coastal homes with a 40% premium.