The end of the year is fast approaching, with most capitals experiencing a strong recovery on dwelling values from the downturn that culminated at the start of 2023.
The recovery is mainly due to an influx of immigration and constricted supply, which the Government is trying to remedy with its ambitious goal of building 1.2 million homes by 2029 through HAFF.
However, according to an ABC report, the industry is only able to deliver about 175K properties per year at current capacity; although, Prefabricated Building Industry claims these figures can be boosted with modular construction.
On a good note, overall construction costs are stabilising, recording the lowest lift in years: a quarterly growth rate of 0.5%, according to CoreLogic’s latest Cordell Construction Cost Index.
Another positive effect of market recovery is the return of residential property investors following a steep decline in FY23, with August investor loan activity up by 27% on previous year – approx. $7 billion – as per PIPA report.
And it’s no wonder property investors are returning, with CBRE Apartment Rent and Vacancy Outlook predicting rental price growth will exceed mid-to-high 30% between now and 2028.
Download and read the full Market Essentials – November 2023 Report.