Australia’s housing market proved to be resilient with more sales and home permits, according to the Australian Bureau of Statistics (ABS) and the Housing Industry Association (HIA).
Data from the ABS showed that home permits in August rose 1.1 per cent, the seventh consecutive monthly increase. On the other hand, the HIA said that new home sales in Victoria and Western Australia mainly influenced a 9.1 per cent increase in September.
The Australian Capital Territory recorded the highest increase in home approvals in August with an 8.9 per cent growth, according to the ABS. On the other hand, the biggest increase in trend terms for housing approvals took place in Queensland, where permits rose 2 per cent. However, the ABS said that the nationwide increase still fell below the record high increase in 2016, which could indicate a slight decline in demand.
For housing transactions, HIA principal economist Tim Reardon said that Victoria’s strong population and job market growth are driving a building boom in the housing market. This has led to a 15.7 per cent year-over-year increase in home sales in the state.
Real estate investors in Queensland should take note of certain regions that are expected to record an increase in prices. Property conveyancing in Townsville, for instance, would likely increase, as more homes could change possession due to the price growth since investors may decide to unlock their asset’s value by putting it on sale.
Other than the city, home prices in the Sunshine Coast and the Gold Coast are among the top five regions poised for growth. The other two cities comprise Penrith City and Wagga Wagga in New South Wales. The growth of home sales and permits in the country bodes well for the economy and business, as each sold home or property to be developed provides business activity and jobs.