ACT’S building industry has seen a boom in new homes this financial year, but according to an industry report card, the growth won’t last.
According to Housing Industry Association’s winter edition of “The National Outlook”, Australia’s most comprehensive housing report card, the forecast expects to see the 2010/11 financial year represent 4750 housing starts in the ACT. However, the report forecasts a decline of 32 per cent over 2011/12 to 2012/13, bringing annual starts to 3300.
HIA executive director for ACT Neil Evans said the decline still has annual dwelling start volumes remaining well above the decade-average levels.
“The ongoing deterioration in housing affordability will certainly work to apply the brakes in an increasing way and for now, remains the foremost obstacle to a sustained appreciable supply of new housing,” he said.
“Inadequate land supply has traditionally been a forbearing nemesis for new housing construction in the ACT; however strides have been made by the Territory Government in recent years to turn this around, with some initial success.
“However, the reality is that this must be sustained in order to facilitate a consistent and healthy rate of new home building, which is absolutely necessary given the ACT’s population growth rate is currently sitting well above the decade average.”
According to the report card, starts are forecast to rise by two per cent in 2013 to a level of 3353.
The report is also forecasting a six per cent growth for renovations investment in the ACT for 2010/11 to an annual value of $431m but a decline of four per cent in 2011/12.