Queensland housing shortfall to drive building flurry
If there's a shortage of housing, there are two things that can be done: One can either bemoan the fact and wait for something to happen, or one can do something about it. It seems in Australia, and Queensland in particular, the latter option is the one that's being taken.
According to a new report released by market forecasters BIS Shrapnel, titled Long Term Forecasts 2015-2030, a significant shortfall in available housing in the Sunshine State is set to spur on a big recovery in home building there. Queensland was one of two states singled out by BIS Shrapnel in this respect, the other being New South Wales. This is good news for anyone planning to buy property in Deception Bay, Morayfield, Burpengary and other nearby areas.
The report states that while economic conditions as a whole will continue to be relatively soft for some time to come, owing to the close of the mining boom, it's a different story for dwelling construction.
"On the bright side, the recovery in dwellings investment is now well entrenched," commented associate director of economics at BIS Shrapnel Richard Robinson.
For a long time, this revovery by the building sector was held back thanks to a weak sentiment in the market and too much caution from investors, according to BIS. However, partly thanks to the forecast of continued low interest rates, this current cycle of investment and building activity is tipped to last a whole 18 months.
The report also forecasts an improvement in the alterations and additions sector, something which is backed up by recent Housing Industry Association (HIA) data. The HIA's senior economist Shane Garrett noted that ultra low interest rates have helped put the renovation market back onto the course for growth, with the volume of activity increasing by 1.2 per cent over 2014. Perhaps readers have already noticed more renovated real estate in Burpengary with their own eyes.