Steve Moran Real Estate

Posts Tagged ‘housing developments’

The beginning of recent housing developments around the nation is forging ahead, driven more or less exclusively by government stimulus spending on public accommodation. New home numbers leaped to the greatest level since middle-2004 in the March quarter.

The number of public sector housing starts jumped from 2,360 inside the December quarter to 4,096 in the March quarter, but this doesn’t precisely depict the vastness of the federal government’s public housing program, which is constructing 20,000 housing units.

Housing Industry Association chief economist Harley Dale estimates the total starts for public housing jumped from 4,000 to 8,000 units in the March quarter, which suggests that new housing for personal purchases dropped inside the quarter.

“The level of detached house starts, while significantly healthier than in the course of the GFC, came back by 2.1 per cent in the March quarter,” he said. There was hopes this year that the housing industry would indicate a stable recovery because of the rush in new housing approvals from local councils within the latter part of last year.

The speedy growth in population has also led to forecasts that home construction would soon pick up. But Mr Dale believed those approvals weren’t in fact equating to new housing starts, to a certain extent because of the difficulty in securing home loans.

The overall number of housing starts climbed buy by 4.3 per cent to 42,400, amid strongest growth in Western Australia (12.1 per cent), South Australia (10.5 per cent Victoria (9.4 per cent) and New South Wales (9.2 per cent).

“A positive outlook for 2010-11 and beyond isn’t assured amongst considerable supply-side obstacles, which, in this cycle, have been added to by a dire shortage of available finance for development,” he said.