new builds in WA dominate rest of country
There has been plenty going on in the news over the past couple of months, but the biggest items have surely been the Intergenerational Report and the Tax Discussion Paper. While the effects of these two releases make their way into public conversation, a definite shift has occurred in Australia's collective long-term planning.
People are more aware of the nature of the needs of the country in the future, and the tax discussion paper has given people a means to change some of this. It's no surprise that there is now a steady focus in the media on population forecasts and housing affordability. Fortunately, when it comes to expanding populations and bustling new developments, Western Australia is a heavyweight.
According to CoreLogic RP Data, there has been a significant shift in population in the Greater Perth region, unlike anything else in the country. Assessing the council areas with the fastest rates of growth, the April 20 report reveals that WA has 13 out of the top 25 quickest expanding populations. This catapults the state comfortably to the fastest growing in the land, with a population increase rate of 2.2 per cent over the year to June 2014. The next highest was Victoria at 1.9 per cent and NSW and Queensland tied on 1.5 per cent.
The local council area with the highest rate of population growth in Australia was Serpentine-Jarrahdale at 6.8 per cent. Aramdale, Kwinana, and Chittering also made the top 10. These fast-expanding areas also experienced bumper changes in their median house prices over this time, highlighting the capital gain associated with new developments and housing expansion. The CoreLogic report hints that a period of Sea Change and Tree Change could be what's driving this resurgence in certain WA suburbs.
While past performance in the housing market is great, what can we expect for new builds going forward? Two storey builders in Perth will be kept busy it seems, as interest rates are likely to remain low. The Real Estate Institute of Australia (REIA) has noted that a very low rate of inflation has put a lid on worries that the cash rate may need to be adjusted upwards.
"With inflation under control combined with a slow down in housing finance, it's reasonable to expect that the RBA Board will not be increasing interest rates in the medium term, providing a stable outlook for home buyers," said Amanda Lynch, CEO of the REIA in an April 22 statement.
As suburbs around the Greater Perth region become increasingly popular and buyers have more freedom with lower interest rates, it would be reasonable to expect a solid pipeline of building activity throughout the winter months. If you're considering building a home, stop in at an apg display home in Perth to see just how great your new house could be.