The residential property market shows no sign of slowing down, as CoreLogic RP Data’s Australian Residential Development Outlook Spring Edition has forecast continuing solid activity into 2016.
It’s good news for people looking to increase their level of property investment, with the construction of a huge supply of new dwellings meaning there’s a bounty of opportunities out there for savvy buyers.
Whether people are searching for their first home or looking to add to their existing portfolio, CoreLogic’s Head of Research Tim Lawless believes this abundance of new properties in development will ease pressure on those looking to buy.
“The heat is expected to come out of housing price rises over the next year, as record supply begins to soak up the excess demand that has been there for some time,” he says.
Despite some speculation that the property sector is headed for a downturn, the latest Australian Bureau of Statistics figures show a record number of new homes have been started in 2014/15, capping three years of solid growth in the sector.
Australian Bureau of Statistics Chief Economist Harley Dale notes that new dwelling commencements may show signs of easing into 2016, “but should remain elevated at what would still be the second highest level on record”.
There’s certainly no shortage of new properties in the immediate pipeline, so mortgage brokers are likely to be kept busy as we head into the new year. The signs are still good for anyone looking towards applying for a new home loan, however it’s worth keeping a close eye on the market in the coming months.
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