When it comes to economic development across Australia, watching the trends of residential housing is a must. After all, wherever there are people, there are bound to be developing financial hubs. Now could be a brilliant time to consider buying commercial real estate in Surfers Paradise, following the release of the latest Housing Industry Association (HIA) & RP Data Residential Land report, which illustrated the strong construction prospects of the coming year.
According to the report, quarterly residential land sales rose throughout the 2013/14 financial year, with a huge June quarter helping to push the annual growth rate up to 10 per cent for the year. In fact, the June quarter alone saw sales for housing land increase by 8.4 per cent – offering some insight into the strengthening nature of the Australian property climate. This was true for both regional and metropolitan areas, with these national signals offering some hope for detached and semi-detached development growth well into the next 12 months.
HIA chief economist Harley Dale said that over the last 15 years there has been a substantial increase in the value of residential land, which needs to be supported well into the future. With the ageing population and overarching need for more accommodation across the country, this future growth needs to be supported by a much more unified focus on Australian development.
Over the June quarter, the weighted median value of residential land rose by 1.1 per cent up to $205,330. Furthermore, capital city land values increased by 1.8 per cent, bringing them up to a huge 7.4 per cent higher than the same time in 2013. RP Data research director Tim Lawless said there has been a bounce back in these prices since the March quarter, which could offer some insight into the future growth of the market.
"This is the strongest result since the June quarter of 2013 which is welcome news. A rise in land sales implies a rise in detached housing construction about six months down the track which in turn provides a substantial multiplier for the Australian economy; more jobs, more building materials, home furnishings, appliances and white good sales," said Mr Lawless in a 23 October statement.
Following up on the growing residential land supply figures, a release from the Master Builders Australia (MBA) earlier this month highlighted the developing responses to low interest rates across the market. MBA chief economist Peter Jones said that this is especially true for investors, who are moving into a number of market across the nation to bolster supplies and help generate economic growth for local communities.
"Investor housing commitments for construction of new dwellings rose strongly to be up by nearly 40 per cent in the three months to August compared to the same period last year. Over the year, owner-occupier commitments for construction of dwellings were up by 12.6 per cent and up 0.3 per cent for purchase of new dwellings," said Mr Jones in a 10 October statement.
"Builders will be encouraged by the combined rise of 8.3 per cent finance commitments for new dwellings. By state, owner occupied commitments for construction of dwellings grew solidly in New South Wales, Victoria and Queensland over the year to August."
While first home buyer figures are reaching low points across the nation, the growing number of properties being developed offers accommodation opportunities throughout Australia. As these regions are bolstered by a spike in resident numbers, the chances of future growth in both residential and commercial real estate in Surfers Paradise will increase. Take advantage of low interest rates now and begin looking for your own Surfers Paradise commercial property today.