The latest figures released by the Australian Bureau of Statistics have offered some insight into the growing residential market across the nation. As this sector continues to grow, the possibilities of investing in commercial property in Surfers Paradise could be sparked as more people begin to call the region home.
Home approvals rose to a new record high in November last year, with a huge 18,245 approvals being sought over the month. This figure is almost 3 per cent higher than the last record set in August 1994, and offers some insight into Australia's property market movements. Housing Industry Association senior economist Shane Garrett said residential construction could be expected to continue into positive territory over 2015.
This approval figure was also 10.1 per cent higher than a year earlier. Specifically, multi unit approvals across the country rose by 18 per cent over the 12 months to November, while detached home approvals jumped by 3.6 per cent. As people begin to invest in medium density properties like apartments, commercial investment Surfers Paradise property could become a great avenue to consider in the near future.
"Residential construction is now a central pillar of support for domestic demand in Australia. It is important that policy reform continues in the areas of planning, land supply and removing the taxation burden on new home building. This will form an important part of achieving the necessary rebalancing of the economy," said Mr Garrett in an 8 January statement.
New dwelling approvals rose by 5.7 per cent in Queensland over November, coming in only behind Victoria and Tasmania. With a supportive investment environment developing in the state, taking the time to plan your own movements into the property market could be a great consideration to make over the coming months.
Not only have approvals seen a boost in 2014, but the resulting construction from these projects has also remained strong and followed through after the initial finances have been secured. Mr Garrett said the market trends indicated that 2015's construction sector would get off to a great start as new home building began.
He went on to say that the flow of home loans is currently at a solid level, with home construction loans in November measuring 7.6 per cent higher in November than they had 12 months earlier. This paints a portrait of the current Australian market, which could be ripe for investment in the near future.
"Healthily functioning housing markets should see a substantial turnover of homes in any given month. However, the total volume of loans for home purchase has been falling consistently over the past few months," said Mr Garrett in a 12 January statement.
"As home prices have risen, so too have the stamp duty bills paid by ordinary homeowners. Excessive taxation is hampering the efficient operation of Australia's housing market. The issue requires immediate attention."
Alongside the construction home loan market in Queensland, November saw a 1.6 per cent increase in the number of owner occupier finances sought across the state as well. Furthermore, Master Builders Australia chief economist Peter Jones said this solid growth can be expected to remain on the back of sustained, low interest rates.
"The trend figures indicate loans for owner occupied construction growing at around 10 per cent on an annual basis, with investment loans for construction running even more strongly at around 20 per cent," said Mr Jones in a 12 January statement.
With these movements occurring nationwide, now could be a great time to get in touch with a local real estate agent to start investigating possible commercial investment options in Surfers Paradise today.