HOUSE CONSTRUCTION – AUSTRALIA

New home approvals fall to weakest in four years

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Original article by Michael Bleby
The Australian Financial Review – Page: 30 : 2-Aug-23

Data from the Australian Bureau of Statistics shows that there was a 7.7 per cent decline in new housing approvals in June. A total of 175,790 new dwellings were approved in the year to 30 June, with approvals for detached dwellings falling by 13.8 per cent and attached homes down by 10.5 per cent. Maree Kilroy of Oxford Economics Australia says demand and supply for housing are moving in opposite directions, which will result in a sizeable dwelling deficiency over the coming years. Separate data shows that new home loan commitments fell by 22.1 per cent to $298.4bn in 2022-23.

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AUSTRALIAN BUREAU OF STATISTICS, OXFORD ECONOMICS AUSTRALIA PTY LTD

Shrinking pipeline for attached homes hits hard

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Original article by Michael Bleby
The Australian Financial Review – Page: 8 : 31-May-23

The latest official building approvals data highlights the growing supply crisis in Australia’s housing market. The figure show that just 3,545 new apartments, townhouses and semi-detached homes were approved in April, which is the lowest level since January 2012. Approvals for detached homes fell by 3.6 per cent month-on-month to 8,049. A total of 11,594 dwellings of all types were approved in April, which is an 11-year low. Maree Kilroy of Oxford Economics Australia says a sharp downturn is under way and the firm does not expect dwelling approvals to rebound until late 2024.

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OXFORD ECONOMICS AUSTRALIA PTY LTD

Target of million new homes by end of decade in jeopardy

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Original article by Mackenzie Scott
The Australian – Page: 6 : 7-Feb-23

Master Builders Australia CEO Denita Wawn says the nation’s construction industry is not building enough new homes to meet demand. The MBA has forecast that just 169,630 new homes will be built nationwide in 2022-23, well below the 200,000 that are needed each year to meet population demand. The MBA does not expect the annual new home build to reach the 200,000 threshold until 2026-27. The MBA’s forecasts will cast doubt on the federal government’s target of one million new homes in the five years from July 2024.

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MASTER BUILDERS AUSTRALIA INCORPORATED

Construction costs rise at fastest pace since 2005

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Original article by Michael Bleby
The Australian Financial Review – Page: 29 : 9-Feb-22

CoreLogic has warned that residential construction costs are likely to rise further in the March quarter, citing factors such as ongoing supply chain disruptions. The firm’s Cordell Construction Cost Index rose by just 1.1 per cent in the final three months of 2021, compared with 3.8 per cent in the September quarter. The index rose by 7.3 per cent in the year to December, its highest annual increase since March 2005. Tim Lawless of CoreLogic says the big rise in annual construction costs might increase the cost of new homes and renovations, which may in turn put upward pressure on inflation.

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CORELOGIC AUSTRALIA PTY LTD

Stimulus creates oversupply of homes

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Original article by Patrick Commins
The Australian – Page: 4 : 25-Aug-21

Tim Toohey of Yarra Capital says the take-up rate of the federal government’s HomeBuilder scheme was more than four times higher than expected. He says that together with state-based incentives, this will result in an oversupply of new housing by 2023. Toohey adds that there is also a good chance that house prices will fall over the next two years. The government received more than 99,000 applications to build a new home via the scheme, as well as some 22,000 applications to undertake renovations on an existing home.

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YARRA CAPITAL PARTNERS PTY LTD

Building approvals bounce back on HomeBuilder

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Original article by Michael Bleby
The Australian Financial Review – Page: 39 : 1-Apr-21

Data from the Australian Bureau of Statistics shows that approvals for stand-alone homes increased by nearly 14 per cent month-on-month in February, to 14,072 in seasonally adjusted terms. Approvals for apartments and townhouses increased by 49 per cent to 5,350; however, this followed a 39 per cent fall in January. Economists say the federal government’s HomeBuilder scheme has been a major catalyst for the strong demand for housing.

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AUSTRALIAN BUREAU OF STATISTICS

Surging house approvals make for strong year of home-building

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Original article by Michael Bleby
The Australian Financial Review – Page: Online : 8-Jan-21

Approvals for detached homes rose 5.9 per cent to 11,712 in November, making it the highest figure since December 1999. This is according to figures released by the Australian Bureau of Statistics on 7 January, which also reported that approvals for apartments and other attached dwellings declined by 3.9 per cent, with total approvals being up 2.6 per cent. Detached home approvals in Queensland were up almost 17 per cent, while approvals in Western Australia were up seven per cent.

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AUSTRALIAN BUREAU OF STATISTICS

State delays hold up HomeBuilder grants

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Original article by Nila Sweeney
The Australian Financial Review – Page: 33 : 16-Jun-20

Housing Minister and Assistant Treasurer Michael Sukkar says there is a lot of interest in the federal government’s HomeBuilder scheme. He says there have been more than 296,000 visits to the HomeBuilder website and over 23,000 people have registered their interest in the scheme. However, mortgage brokers claim that they have not yet been able to get any borrower processed under the scheme, as the states have not yet signed up to it. Homeloanexperts.com.au MD Otto Dargan says it is still waiting to hear from the appropriate state government bodies on advice as to how the scheme will work.

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AUSTRALIA. DEPT OF THE TREASURY, HOMELOANEXPERTS.COM.AU

Near $1bn boost for building kicks off targeted stimulus

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Original article by Geoff Chambers
The Australian – Page: 1 & 2 : 3-Jun-20

The federal government is expected to release details of its coronavirus stimulus package for the construction industry on 4 June. It is tipped to include cash grants of between $20,000 and $50,000 for people buying a new home, in order to avert a decline in construction activity towards the end of 2020. The government is also expected to provide cash grants for home renovations. A stimulus package for the arts and entertainment is also said to be on the government’s agenda.

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Home building hopes turn positive

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Original article by Michael Bleby
The Australian Financial Review – Page: 29 : 16-Jan-20

The latest quarterly survey of the construction sector by the ANZ Bank and the Property Council of Australia suggests that building activity in the residential market will improve in the second half of 2020. The index of expectations for housing construction over the next 12 months has risen by 14.6 points in the survey for the March 2020 quarter; it is the largest quarterly gain since the three months to December 2013. PCA CEO Ken Morrison says the latest survey indicates that housing affordability will continue to be a key issue in 2020.

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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, PROPERTY COUNCIL OF AUSTRALIA LIMITED