Home building frenzy tipped to end: Housing Industry Association

By Rebeccah Elley · · 2 min read
Fact Checked
Advertiser disclosure

While the Australian property market has been thriving thanks to the low interest rate environment, the Housing Industry Association has released a report which predicted the residential building boom would come to an end.

The Winter 2015 National Outlook pointed to excessive taxation as a major hindrance to providing Australians with their housing needs in the future.

According to HIA around 214,450 new dwellings commenced across Australia over 2014/15. By comparison, HIA predicted that construction on only around 175,000 new dwellings would commence per year towards the end of the decade.

HIA Senior Economist Shane Garrett explained that this “falls short of Australia’s long term requirements and emphasises the importance of reform around taxation and housing supply policy.”

Apart from excessive taxation in the form of stamp duty, Garrett said that other factors that contribute to the difficulty of fulfilling housing needs are the slow release of land and a raft of planning restrictions.

“The effect of these supply bottlenecks will become apparent over the next 12 months, with the volume of new home building projected to decline by 7.0% during 2015/16,” said Garrett.

HIA’s predictions of an end to the home building frenzy, come as Master Builders Australia has released a report around commercial construction that showed the sector has fallen back into negative territory. 

Peter Jones, Chief Economist of Master Builders Australia said, “despite earlier optimism, the latest survey shows that the anticipated recovery in commercial construction has failed to materialise.”

The National Survey of Building and Construction report showed that in the June quarter the index measuring current conditions in the non-residential building sector fell to 46.1 which has reversed the confidence present in the December 2014 and March 2015 quarters.

Are you planning on buying a new home? Then head on over to our home loans hub to compare some of the top deals in the market today.

Home loan comparisons on Mozo - last updated 16 April 2024

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure
  • Featured Product
    Mozo Expert Choice Badge
    Unloan Variable

    Owner Occupier, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    5.99% p.a. variable
    5.90% p.a.

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

    Compare
    Go to site
    Details
  • Mozo Expert Choice Badge
    Express Home Loan

    Owner Occupier, Principal & Interest, LVR <90%

    interest rate
    comparison rate
    Initial monthly repayment
    6.01% p.a. variable
    6.14% p.a.

    Get fast online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.

    Compare
    Go to site
    Details
  • Flex Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    Initial monthly repayment
    5.99% p.a.
    fixed 3 years
    6.37% p.a.

    Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

    Compare
    Go to site
    Details
  • Discounted Home Value Loan

    Owner Occupier, Principal & Interest, LVR 70-80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.09% p.a. variable
    6.09% p.a.

    Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Settlement fee waived on new borrowings from $50,000 (T&Cs apply).

    Compare
    Details
  • Neat Home Loan

    Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    Initial monthly repayment
    6.14% p.a. variable
    6.16% p.a.

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

    Compare
    Go to site
    Details

* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.