Just how important is property to the economy?

There’s just no understating the importance of home building in the context of the wider economy, one major group has noted, which has been confirmed through the latest national accounts. Responding to data from the Australian Bureau of Statistics (ABS), the Housing Industry Association (HIA) stressed that constructing new properties is critical to maintaining the balance sheet.

Bringing new Ormond real estate and property to other parts of the country is essential, especially as the economy is still picking itself up following the decline in resources sector activity. Thankfully, the March quarter figures seem to confirm that this is the case.

“New dwelling investment grew by 1.6 per cent in the quarter – the 14th rise in the past 15 quarters – while the first bounce in renovations activity since mid-last year was also an upbeat result,” noted HIA chief economist Harley Dale.

Approvals go from strength to strength

ABS figures show that dwelling approvals for private sector houses increased 0.2 per cent throughout April. Victoria’s result registered at 0.7 per cent, making it one of the highest in the country.

On a national scale, there was also an increase in the value of total building approvals, up 1.1 per cent from the previous month. It’s the third month in a row that this trend has been registered.

The HIA believes the focus should now be on making sure the tax regime works in people’s favour, otherwise demand for new homes could soon start to dwindle. Affordability will be a key issue moving forward and one that needs to be addressed if home building is to continue to thrive.

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