PropertyBuzz, your daily dose of property news.
Construction Levels Might Not normalise until 2030, Aussie Rents surge 11 per cent in 12 months, and Interest-Free Loans provide a lifeline in WA.
Welcome back to Property Buzz for a brand new year! I’m Grace Ormsby
Today is Wednesday, 10 January.
– Despite a slight increase in building activity in November 2023, economists warn it could take until the latter half of the decade to see significant improvement for the sector.
– 18 months of cash rate hikes have proven a serious hit to residential building approvals, as noted by Housing Industry Association chief economist Tim Reardon.
– Despite some positive data, such as an almost 7 per cent increase in private attached dwelling approvals, there are concerns for a sustained mismatch between housing demand and supply due to planning lags and construction time frames.
Keeping an eye on the housing crisis, rents in Australia increased by $60 per week over the past year.
– Sydney, Melbourne, and Perth saw the highest rental growth, with increases of 13 per cent, 14 per cent, and 12 per cent respectively for houses.
– All up, the combined capital cities experienced a 12.7 per cent increase in advertised rents for houses, bringing the average rent to $600 per week.
– PropTrack economist Angus Moore attributes the rise to strong demand and low vacancy rates, but suggests rent growth may be slowing, offering potential future relief for renters.
And turning our attention to the West now, and the Western Australian government will provide interest-free loans to residential builders to complete projects delayed by a lack of funds.
– Builders can apply for loans up to $300,000 in total, with $60,000 per property, for homes under construction for over two years, provided they are solvent and have been in business for over four years.
– The government has allocated $10 million for this initiative, which will be distributed on a “first come, first served” basis.
– The initiative aims to support the building industry, prevent insolvencies due to rising costs, and contribute to supply, while also helping to complete homes for families left stranded with incomplete projects.
That’s all for today.
See you again tomorrow, 11 January, for your daily dose of Property Buzz.
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