|A Record Number Of New Homes Being Built Now!
Do you know that statistics show dwelling starts rose by 0.5 per cent in the
September 2015 quarter?
If fact, work started on a record 215,053 new dwellings over the year to September, which
is more than 13 per cent on the previous year. More than 65 per cent of dwellings being
built are apartments. Right now, a record 194,252 homes are under construction with
dwelling starts in NSW in the year to September 60.7 per cent above our decade average.
Further, there were 33,713 homes in the September quarter that had planning approval
for construction but not yet commenced. This is down 2 per cent from our record highs.
The latest Westpac/Melbourne Institute index of consumer confidence fell by 3.5 per cent
in January to 97.8 due to financial market volatility and a lower Australian dollar.
So, what does this all mean for us?
More homes are being built than ever before, with almost $44 billion of work currently in
the pipeline. There are signs that activity is levelling but with a record amount of work to
However, a healthy degree of caution may be wise since there is a large amount of new
housing stock to be absorbed over the coming years with rental vacancy rates to be
What do the figures show?
The confidence index is up 4.3 per cent from a year ago. Four of the five components of
the index fell in January and the estimate of family finances compared with a year ago was
down by 9.4 per cent.
Further, the estimate of family finances over the next year is down by 2.3 per cent and
economic conditions over the next 12 months is down by 5.0 per cent.
It is evident that the world's advanced economies are suffering from secular stagnation.
Basically, the economic speed limit of advanced economies has almost halved due to an
overabundance of savings chasing too few productive investment opportunities.
What is the importance of the economic data?
The Index of Consumer Sentiment survey was first undertaken in 1973 and conducted on
a quarterly basis until 1976, a six-weekly basis from 1976 to 1986, and has been
conducted monthly ever since. Confident consumers may be more inclined to spend,
especially on major items, such as property.
This means that improving your home or developing your property for better returns can
help you achieve your lifestyle and financial goals.
RES Council Approvals specialise in planning approval, private certifier and town planning
services. We get the planning approval you need to get your project done!
Contact us to find out more about getting your building approval, speedily, efficiently and
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