Housing Industry News – October 2021
The housing industry is going from strength to strength.
Melbourne prices set to surge
It is positive to see the property market in Melbourne continue to grow, with continued growth forecasted. The property market has never been stronger, with property price growth near record highs and record low interest rates. The pandemic has revealed the demand for detached houses with both investors and owner occupiers ready to buy. [1]
New home sales strengthen
HIA Economist Tom Devitt has stated that Melbourne’s property prices for new detached houses increasing by 2.3 per cent in September 2021, compared to the previous month. It has been over six months since the end of the HomeBuilder grant in March 2021 and sales have remained strong. These strong sales will ensure that the boost in home building flows through to the second half of 2022, making the home building sector pull the economy forward. On a positive note, we can also see that there is a high demand for skilled trades and ongoing employment. [2]
Victorian Homebuyer Fund
The Victorian Government announced the introduction of a new Victorian Homebuyer Fund. This fund will allow more than 3,000 people to buy a home with a deposit as low as 5 per cent. The Victorian Government will also provide up to 25 per cent of the purchase price and own an equivalent share in the property. We note Victorian Treasurer Tim Pallas comments that “the pandemic demonstrated that having a home was vitally important”. It should be noted that a similar scheme has already been in place in Western Australia and South Australia, which has shown that house prices could rise by as much as the grants given to people to buy a new home. [3]
?New home listings continue to grow
The Australian Financial Review reports that new home listings rose by 9.9 per cent as the end of lockdowns. This has encouraged buyers and vendors to re-enter the market. New homes for sale have more than doubled in Melbourne in the past year, the largest gain across all capitals. The strong demand is unlikely to slow down with more stock arriving in October and November. Additionally, we see low interest rates continue to stimulate the housing market with the expected economic uplift following the end of lockdown. [4]
I look forward seeing the housing industry growing strong.
Stay well, stay positive.
领英推荐
John Goris
Director and CEO
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References:
?1.???????ABC News – [ONLINE] 29/09/2021
2.???????HIA – [ONLINE] 12/10/2021
3.???????Domain – [ONLINE] 08/10/2021
4.???????Australian Financial Review – [ONLINE] 05/10/2021
https://www.afr.com/property/residential/new-home-listings-jump-23-per-cent-in-sydney-20211005-p58xal
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3 年Thanks for sharing this John Goris ??