Bumper New Home Sales Shore Up Construction Pipeline

Lillicrap said strong house price growth was also a contributing factor to continued market confidence.

“This strong sales volume will continue to push the national economy forward,” she said.

“New home sales in New South Wales and Western Australia increased by more than a third in the June 2021 quarter compared to the same period in 2019.

“Sales in Queensland were up 4.4% from the June 2019 quarter, while Victoria is flat (down 0.1%).

“South Australia had the strongest response to HomeBuilder, but sales since the end of the program remain 14.4% lower compared to the June 2019 quarter.”

But a KPMG report on The impact of Covid on the Australian residential real estate market warned of a “slowdown” in house prices over the next two to three years.

Research assessed the impact of Covid-19 on property prices in Australia and found house prices to be between 4% and 12% higher, and units were up to 13% higher than in the absence of the global pandemic.

KPMG’s chief economist Dr Brendan Rynne wrote the report and said the stimulus measures introduced in response to the Covid-19 economic downturn have had a direct and indirect impact on the Australian real estate market.

“While our analysis shows that lower mortgage interest rates have contributed to the sharp increases in house prices seen over the past year, house price growth is expected to moderate over the past year. over the next few years as mortgage interest rates begin to rise and the impact of lower than expected population growth begins to be felt, ”said Dr. Rynne.

“Our analysis suggests that the recent spike has moved house prices away from estimated equilibrium price levels.

“We expect this imbalance to begin to narrow … over the next two to three years, this will put downward pressure on prices and eventually outweigh the positive impacts on higher factor prices. short term, which should weaken over time. ”

Source link

About Alma Ackerman

Check Also

Researcher explores genetic interaction between personality traits and COVID

In a recent study conducted at the University of Munich in Germany, scientists set out …

Leave a Reply

Your email address will not be published. Required fields are marked *