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Housing construction on the ris...

Housing construction on the rise in Canberra

Canberra is set to experience a spike in the construction of new detached homes, according to the findings of a new report. 

The latest data from the Housing Industry of Australia (HIA) shows that new unit construction could plummet in this financial year - but this activity will be replaced by home building. 

Multi-unit starts have dipped by 38 per cent, but house construction is expected to jump by 47 per cent. 

Greg Weller, executive director of HIA ACT, told Domain that strong increases in detached home building is good news for Canberra. 

This is because the construction of houses has an overall stronger economic benefit, in addition to offering a bigger flow-on effect compared to unit construction.

"There's more opportunity for job creation and for manufacturers and suppliers of products that go into houses," Mr Weller remarked.

"It's also positive for apprentices in the industry as detached home building tends to be stronger for supporting those coming into the industry."

Mr Weller added that his organisation has forecast a strong lift in the renovation market, which already benefitted from an increase of 7.1 per cent during the last financial year.

"Historically low interest rates and steady house price growth are the key ingredients for the renovation market," he commented. 

Forecasts indicate that renovation activity is expected to grow by 3.1 per cent this financial year, with continuing growth of five per cent for the period covering 2017 and 2018. 

Over half a billion dollars of construction work was completed in the Australian Capital Territory (ACT) in the June quarter, according to the latest figures from the Australian Bureau of Statistics. 

ACT construction has risen for three consecutive quarters, with the total value pushing past the $2 billion mark. Almost $1.3 billion of this figure was accounted for by residential construction. 

All information provided is of a general nature only and does not take into account your personal financial circumstances or objectives. Before making a decision on the basis of this material, you need to consider, with or without the assistance of a financial adviser, whether the material is appropriate in light of your individual needs and circumstances. This information does not constitute a recommendation to invest in or take out any of the products or services provided by SMATS Services (Australia) Pty Ltd or Australasian Taxation Services Pty Ltd.

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