Home Building To Decline 20%
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Home Building To Decline 20%

Labour and materials shortages are set to pinch home supply.

By Terry Christodoulou
Wed, May 25, 2022 8:50amGrey Clock 2 min

Australia is staring into the headwinds of a ‘shallow’ 20% decline in housing construction over the next three years as building materials and labour shortages extend building timeframes — despite higher borrowing costs and affordability problems cutting demand, according to the Housing Industry Association (HIA).

The decline from 229,000 housing commencements in the 2021 calendar year to an estimated 183,800 in 2024 is projected based on unemployment remaining at low levels and an extension of construction times from 8.3 months to 12.2 months on average.

However, different sectors of the housing market should be expected to behave differently. A 34% decline in detached houses starts through to 2025 will be offset by an increase in apartment commencements and other attached homes — buy 14% — by 2026 as immigration increases, according to HIA’s quarterly forecast.

“Ongoing strong demand for homes is assisting builders to trade through this cycle, but rising borrowing costs and slowing demand will increase cash flow pressures, before the availability of materials improves,” the HIA report says.

“The combined impact of higher interest rates, increased cost of a new home and capacity constraints will see the volume of homes commencing construction slow to a trough in 2025.”

The decline in home building is forecast to last for 13 quarters — longer than the typical two-year fall according to the HIA.

Following a peak of 141,150 detached home starts, the total will fall to 128,790 this year and then slip 5.2% in 2022. Higher interest rates will dampen demand with commencements cut to 108,890 in 2024 before bottoming out at 99,350 in 2025.

Attached home starts will rise 1.2% in the financial year 2023, and 3.9% in 2024 to reach 80,700 from last year’s 74,350.

The market should expect 4.3% of further growth in 2025 and 4% in 2026 bringing the total to 87,560.

 



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The home in the village of Sagaponack has plenty of balconies to take in the surrounding water views

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A waterfront home in the Hamptons village of Sagaponack, New York, is on the market for the very first time.

Asking $25.95 million, the gray shingle-style home was built in 2008 by the seller and has since been available as a summer rental, but it’s never been up for sale.

Designed by architect Faruk Yorgancioglu, the “waterfront home offers privacy and panoramic beauty that cannot be duplicated under today’s zoning laws,” said co-listing agent Marilyn Clark of Sotheby’s International Realty – Bridgehampton Brokerage.

Jaime Lopez for Sotheby’s International Realty

The seller bought the property, which at the time had two small structures, at auction in 2005 for approximately $2 million, according to co-listing agent Deborah Pirro of Daniel Gale Sotheby’s International Realty. Mansion Global could not contact the seller.

The home hit the market Thursday, and in addition to Clark and Pirro, it is co-listed by Raquel Lopez of Sotheby’s International Realty – Bridgehampton Brokerage and Diane Anderson of Daniel Gale Sotheby’s International Realty.

Spanning 6,000 square feet, the home is filled with bright interiors, which were designed by New York-based interior designer Steven Gambrel. The open gourmet kitchen flows into a casual dining area and a living space with a fireplace, which is one of two double-sided fireplaces in the home, Pirro said.

A sunroom overlooks the water.
Jaime Lopez for Sotheby’s International Realty

“The placement and scale of fireplaces throughout the home is perfection,” she added.

A separate dining room has French doors that open onto a deck, listing photos show.

There are six en-suite bedrooms, including two primary bedrooms. The larger of the two is its own private retreat, outfitted with a fireplace, a sunroom and a large balcony, offering a space to watch the sun set over Sagaponack Pond, according to Sotheby’s.

Jaime Lopez for Sotheby’s International Realty

The home sits on a little more than an acre of waterfront land, bordering Sagaponack Pond, where there’s a private dock, and looking out at the Atlantic Ocean in the distance.

“The location on the pond with the view of the ocean waves breaking is spectacular and unique,” Clark said. “You are close to beaches and the Sagaponack General Store. It is a quick paddle to the famous Sagg Main Beach.”

Other outside amenities include a gunite swimming pool and a hot tub, which are surrounded by a spacious deck, as well as a pool cabana, which has a full bathroom, changing rooms and a sauna. There’s also multiple balconies, decks and a screened porch overlooking the pool, striking a balance between indoor and outdoor living.

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11 ACRES ROAD, KELLYVILLE, NSW

This stylish family home combines a classic palette and finishes with a flexible floorplan

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