HIA SEES SIL­VER LIN­ING

Ellenbrook Advocate - - RESIDENTIAL -

THE worst ap­pears to be over for the WA res­i­den­tial build­ing mar­ket, ac­cord­ing to the Hous­ing In­dus­try As­so­ci­a­tion (HIA).

Fol­low­ing the re­lease of the Au­tumn 2017 edi­tion of its Out­look Re­port for Western Aus­tralia, ex­ec­u­tive di­rec­tor John Gelavis said the WA hous­ing mar­ket had ex­pe­ri­enced sig­nif­i­cant re­duc­tions due to the end of the min­ing in­vest­ment boom and the cy­cle was now lev­el­ling out.

“The sil­ver lin­ing ahead is that the de­tached house side of the mar­ket showed an in­crease in ac­tiv­ity at the end of 2016 for the first time in two years,” he said.

“Other in­di­ca­tors of build­ing ac­tiv­ity are also show­ing signs of an im­mi­nent re­turn to growth.”

Dwelling com­mence­ments in the De­cem­ber 2016 quar­ter were down by 8 per cent com­pared with the pre­vi­ous quar­ter due to a con­tin­ued slow­down in multi-units com­mence­ments.

“We fore­cast that as the econ­omy in WA sta­bilises af­ter the slow­down in in­vest­ment and con­di­tions in WA grad­u­ally im­prove, that de­tached hous­ing will lead the way to growth and then con­tinue to grow mod­er­ately through to the end of this decade,” Mr Gelavis said.

“Multi-unit dwelling com­mence­ments will fol­low with a re­turn to growth dur­ing the 2018-19 fi­nan­cial year.

“It is ex­pected that new dwelling starts in WA will have fallen by 22 per cent by the end of this fi­nan­cial year but we an­tic­i­pate a re­bound in 2017-18 with a 3.7 per cent in­crease and fur­ther growth of 6.3 per cent fore­cast for 2018-19.”

The chal­leng­ing con­di­tions in the state econ­omy had also hurt WA’s home ren­o­va­tions sec­tor but Mr Gelavis said this was also likely to ex­pe­ri­ence re­cov­ery over the next few years as house price growth re­turned to the mar­ket.

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