Western Australia and NSW top the residential building markets
Western Australia has once again topped the rankings and NSW has surged to the second spot as the strongest residential building markets in Australia, according to a new report by the Housing Industry Association.
The news comes as recent building approvals figures from the Australian Bureau of Statistics showed housing approvals across Australia in May increased by 14.3%, up from 9.9% in April. If you’re looking at purchasing a new home, search the home loan market here.
HIA’s chief economist Harley Dale said the rapid turn of fortunes in NSW is the “big story” in this report. “Six months ago we noted there was momentum building in NSW and this has been confirmed by the latest analysis. NSW is now the second strongest residential building market in the country, having been ranked number five only six months earlier.”
Dale noted much of the recovery in NSW can be attributed to the surge in activity in the multi-unit sector, but the detached home market also places NSW amongst the strongest in the country.
While, the report showed the renovations market remains a soft spot for NSW, there are signs that conditions in this part of the market are improving. If you’re planning a renovation, organise your home insurance before you start.
Dale said there was daylight between WA and NSW and the rest of the states, as the Australian Capital Territory, Victoria and the Northern Territory are clustered closely together in the middle and South Australia and Queensland are still just off the pace. Tasmania remains the weakest residential building market in the country for the sixth consecutive quarter.