Owner occupiers driving housing construction
One of the challenges facing Australia in the coming decades is housing its rapidly growing population. There are already a lot of individuals populating our country, and by some accounts, the current number is set to nearly double in four decades time. At the same time, the rate of housing construction has to keep up with this growth, otherwise there's nowhere for these added Aussies to live.
That's why it's good to see the figures for lending finance for owner occupiers doing so well over the course of 2015. In trend terms, owner occupier housing finance grew 0.4 per cent from April to May 2015, sitting at $18,645 at the present moment. Whether it's to buy property in Burpengary East or elsewhere in the Sunshine State, it's clear Australians are borrowing at a strong pace.
Property Council of Australia executive director residential Nick Proud said this owner occupation would serve as the foundation for new home construction going into 2016.
"[T]he full year result is still strong and residential development activity should continue to remain at peak levels throughout 2015 and into 2016," he said on 13 July.
Nonetheless, Mr Proud also noted that this was no time for the state and commonwealth governments to get complacent. Improvements to land release and development assessment, as well as reforming taxes like stamp duty would also be necessary to ensure the real estate sector's continued success.
This news is no doubt connected to the Reserve Bank of Australia's (RBA) continued holding steady of record-low interest rates. The RBA last cut the official cash rate in May and has held it at an all-time low of 2 per cent since then. This itself followed a period of interest rate stability that lasted longer than a year, and led many to start scouting for real estate in Morayfield and other areas.