Home building in the new Canberra suburb of Lawson. More first home buyers are entering the market.
More first home buyers are entering the Canberra property market according to the latest ACT data from the Housing Industry Association.
The HIA’s Winter 2017 Outlook for the ACT report paints a bright picture for home building in the territory as well as an improved position for first home buyers.
“The growth of first home buyers in the ACT is one of the good news stories of the report,” said HIA Executive Director ACT & Southern NSW, Greg Weller.
“During the June quarter, owner-occupier loans to first-time buyers increased by 21.8 per cent compared to the same period one year earlier, taking this sector of the market to 16.9 per cent of new mortgages.”
Mr Weller said that the HIA is expecting the ACT to see fairly consistent growth in detached house building over the next three years.
“Consistent with previous data, the picture looks fairly bright for home building, notwithstanding the rebalancing of multi-residential building,” Mr Weller said.
“Evidence is that new apartment building is coming off the boil, resulting in an 18.1 per cent decline in new dwelling commencements in the ACT during 2017/18, though the quantum of the fall has been adjusted down marginally since the previous quarter.”
Mr Weller said that, despite the slowdown in apartment construction, the growing momentum on the new detached house side of the market is expected to result in total new dwelling starts rising by 6.0 per cent during 2018/19 and by 5.5 per cent in 2019/20.”
“Conditions in the ACT are currently quite favourable from the perspective of residential construction with robust dwelling prices growth, steady inward migration and one of the most solid labour markets in Australia,” Mr Weller said.
“The ACT’s home renovations market is also well-placed to benefit from the favourable economic conditions with growth of 5.1 per cent forecast for 2017/18 and a 1.2 per cent expansion anticipated in 2018/19.”
How difficult is it for first home buyers to buy into the Canberra property market? Is it getting easier or harder? Let us know your thoughts in the comments below.
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