The house construction in Australia will get a vertical growth; give an impetus to the construction industry in Australia.
This market in Australia is predictable to be healthy in the coming year with land sales, particularly in regional areas.
Propertywire.com, an online channel that works on commercial and residential construction and house building section has recently published an article featuring the growth that Australia would all set to witness.
Quarterly residential land sales held up at reasonably elevated levels throughout 2013/2014, with 10% growth, according to the latest HIA-RP Data Residential Land Report provided by the Housing Industry Association.
The June of current financial year shows that the residential land sales up by 8.4 per cent.
HIA chief economist Harley Dale: ‘Both capital city and regional land markets experienced higher turnover during the June 2014 quarter. Growth was stronger in the aggregate regional land markets, up 13% compared to a 5.5% rise for Australia’s six state capitals.
Reliable with signals from other home building sectors, the geographical recovery in residential land sales is broadening. That is a good sign for detached and house construction in 2014/2015.
In the June 2014 quarter the weighted median price of residential land increased by 1.1% to $205,330, only the third time the value has exceeded the $200,000 threshold. Capital city land prices increased by 1.8% in the quarter to be up by 7.4% compared to the June 2013 quarter. Land prices in regional Australia were essentially flat in the June 2014 quarter, easing by 0.1% but up by 4.1% in annual terms.
The article that published in Propertywire.com also informed that the strongest result since the June quarter of 2013, which is welcome news. A rise in land sales implies a rise in detached housing construction about six months down the track, which in turn provides a substantial multiplier for the Australian economy; more jobs, more building materials, home furnishings, appliances and white good sales.
Whether this quarterly improvement can develop into a trend is yet to be seen. Despite the June quarter lift, the previous three quarters were showing a slowdown in the number of sales while vacant land prices continued to rise, a trend which may point to ongoing supply shortages of well-located vacant land.