PropertyBuzz, your daily dose of property news.
Relief is on the horizon for home builders, pessimism rises for Aussies’ homeownership
dreams, and which state is charging ahead in loan values?
Welcome to Property Buzz! I’m Juliet Helmke. Today is Tuesday, 31 October.
In our top story today, the Australian Bureau of Statistics has reported no change in the cost of house building materials in the September 2023 quarter, indicating a long-awaited stabilisation of construction costs.
The slowing in house building prices is a reflection of the easing of certain supply chain bottlenecks that were caused by COVID-19, with prices actually falling for some key materials. For example, last year, structural timber and reinforcing steel prices were both up by more than 60 per cent on pre-pandemic levels. In the last year, they have declined by 8.8 per cent and 5.3 per cent respectively.
It’s welcome news for builder, renovators, and the broader public, as the further stabilization of construction costs will have positive implications for the economy and the government’s plan to construct 1.2 million new homes in the 5 years starting from July 2024.
In other news, A poll by the Susan McKinnon Foundation found that only 59 percent of Millennials and 63 percent of Gen Zs in Australia believe they will own a home, despite 88 percent and 93 percent respectively desiring to purchase property.
– Older renters are even more pessimistic, with only 40 percent of Gen Xs and 15 percent of Baby Boomers believing they will own a home if they do not already.
– But the survey found mixed attitudes towards development, with younger people more supportive of density in their neighbourhoods, and a higher preference for terraces, townhouses, and semi-detached homes, over their older counterparts.
And finally, Queensland has been revealed as the state with the highest loan value growth, with home loans rising by 15.3 percent over the quarter compared to its 10-year average, according to CommSec’s State of the State’s report.
But despite long-term gains in most of the country, all states saw a decrease in loan value in 2023 compared to 2022 thanks to a dampened market, with the ACT and Northern Territory experiencing the largest drops of 26.4 percent and 27.3 percent respectively.
– Tasmania, meanwhile, leads in new dwelling commencements, with a 4.8 percent increase in Q3 compared to its10-year average, while all other states recorded drops.
– From an annual perspective, only NSW posted gains in new home starts, with a 5.3 percent increase, while the ACT experienced the largest drop, down 47.6 percent .
That’s Property Buzz for today, thanks for listening. See you again tomorrow, 01 November, for your daily dose.