In an ideal property world, the rate of building would always catch up with demand for homes. Unfortunately life isn’t a fairytale, but it could be a storybook ending for those of you looking for a construction loan in Victoria. New figures from the Australian Bureau of Statistics and the Property Council of Australia show that Victoria holds the highest number of approvals for new properties, confirming that building activity is on the up and up in this state.
New South Wales is generally front page news for surging property values, but Victoria is holding its own in the construction sector. This will ideally do wonders for the state’s property market and spur more people to take out construction loans to build a home. The number of building approvals increased 14.7 per cent over 2014 in trends terms, and January saw approvals rise 0.5 per cent.
Executive Director for Victoria, Jennifer Cunich, said 5,107 homes were approved in January in Victoria and 58,206 over the year, positioning it squarely as a driver of the Australian economic growth. The Housing Industry Association is also predicting a strong number of new builds in the state this year, following the already impressive quantity in 2014.
If you were thinking about taking out a construction loan, it might pay to do this as soon as possible. While dwelling starts are expected to climb 7.3 per cent, like many other locations across the country, industry commentators are urging the government to keep approvals flowing freely in Victoria.
“What we have here is a golden opportunity for national gains to be achieved in terms of jobs, strong communities and housing affordability when the residential development industry is at its best,” Ms Cunich said in a March 3 release.
“That’s why reform is so vital, to ensure that the high approval numbers are translating into construction of the new homes needed to meet demand and keep a lid on prices.”
If home approvals continue as they are, Victoria could become a real property hotbed.
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DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.