Home building frenzy tipped to end: Housing Industry Association

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 February 27, 2021

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.
  • Smart Booster Home Loan

    1 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a.variable for 12 months and then 2.48% p.a. variable
    2.47% p.a.

    A super low introductory rate home loan with no monthly or ongoing fees. Unlimited free redraws and unlimited additional repayments to help you build your equity and own your home sooner. Multiple loan splits available. (Rates revert after introductory period ends). 20% minimum deposit required.

    Compare
    Details
  • Basic Home Loan

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

    interest rate
    comparison rate
    Initial monthly repayment
    2.09% p.a.
    fixed 2 years
    2.56% p.a.

    Get a flexible loan structure with up to six loan accounts with different rate types. Make free extra repayments. Enjoy free redraw facility. No upfront or ongoing fees. Option to earn Qantas points.

    Compare
    Details
  • Mozo Experts Choice 2020
    UHomeLoan - Discount Offer

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    2.34% p.a. variable
    2.34% p.a.

    Enjoy a super low rate, $0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year.^ Free redraw with flexible repayments. Min 20% deposit.

    Compare
    Details
  • Mozo Experts Choice 2020
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    2.19% p.a. variable
    2.19% p.a.

    Fast online application with no fees. Free extra repayments and redraw facility. Min 40% deposit. Crowned Best New Home Loan for 2020 by the Mozo Experts.^

    Compare
    Details
  • Special Fixed Rate Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a.
    fixed 4 years
    3.45% p.a.

    Ability to split your loan between fixed and variable. $2,000 cashback offer for investor & owner occupied home loans over $250k with LVR ≤80% when refinancing to Newcastle Permanent. Limited time offer extended, T&Cs apply

    Compare
    Details
placeholder

Talk to a Mozo home loans expert

Buying your first home, refinancing your existing home or thinking of investing? Speak to Steve, our home loans expert today!

Get Started

^See information about the Mozo Experts Choice Home Loans 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.