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Positive signs for WA new home approvals

By Kevin Kelly

Thinking of buying brand new real estate in Australind? There's a fairly good chance you won't be alone, as the latest figures point to a rise in transactions across Western Australia.

Some property experts worried that sales had been struggling, but the latest figures show this might no longer be the case. The Housing Industry Association (HIA) released its latest New Home Sales Report, which suggests transactions have now found their floor.

What the data says

The HIA's executive director in Western Australia John Gelavis emphasised that detached house sales increased 5.4 per cent in seasonally adjusted terms during May. Given how low some of the previous months' results have been, this should give some room for encouragement.

The Australian Bureau of Statistics (ABS) has also revealed an upswing in construction activity. Across the country, dwelling approvals were up 0.9 per cent in May in trend terms. It's the sixth month in a row that a rise has been registered, while the total value of approvals has increased for the past five months.

So, not only are more housing projects being given the green light, but they're also costing more to build. This bodes well for the WA economy and the country as a whole.

Building homes for the future

Mr Gelavis stressed that it's important to make sure plenty of new homes continue to come onto the market.

"Policymakers must ensure that housing construction does not fall to an unsustainably low level, an outcome which would not only place pressure on housing supply and ultimately affordability, but would also be detrimental for the broader state economy," he commented.

The Property Council of Australia agreed, emphasising that efforts must be made to ensure people aren't being taxed too heavily whenever they decide to invest in property. Reflecting on the ABS figures, it stressed the need for housing supply levels to be maintained now and well into the future.

Chief of policy and housing Glenn Byres noted that many jobs throughout the country rely on the strength of the construction sector, making it even more important for its future to be secured.

Finding your real estate in Australind

The team at Ray White Bunbury is here to help you find your new home, whether you're buying a new build or an existing property. We can also assist with other services such as property management in Bunbury, so why not get in touch to find out more? 

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