In news which will come as a great relief to many, the outlook for the residential real estate industry in New South Wales is looking up.
As the state is home to Australia’s most populated city, Sydney, the real estate industry is one of great significance and important, and populations grow and demand increases.
Now, new houses for sale are on the rise, giving a boost to the local sector after some tough years.
According to the Housing Industry Association (HIA), sales of new houses in New South Wales continued on an upward trend in April after dropping to a cyclical low in the third quarter of 2012.
David Bare, HIA NSW executive director, stated that after a slow start to the year it’s good to see new home sales bounce back in March and April.
“The NSW Government’s commitment to boosting economic activity in the state and improving the supply of housing are beginning to pay dividends. However, the past decade has been marred by false starts for a home building recovery, so the situation remains fragile,” said Mr Bare.
“With the state budget just around the corner, it is important that the Government continues its path for reform. This would stand the current improvement in good stead to gather momentum and deliver a recovery in new home building required by the growing NSW population and by the state’s broader economy.”
NSW’s real estate industry has been showing other signs of life recently. HIA’S new home sales report surveys Australia’s largest volume builders, and revealed that total seasonally adjusted detached home sales in New South Wales increased by 8.1 per cent in April 2013, following on from a 16.3 per cent lift in March.
Data from February also shows that approvals for detached homes are coming in high, helping to boost home sales.
That month saw 1,601 detached home approvals, one of the best monthly results since activity in NSW’s housing industry sector entered a slump in 2005, said Mr Bare.
As approval numbers have been trending upwards over the last six months, it could bode well for a more sustained improvement in the industry.
As housing construction is a key driver for a healthy economy in NSW, Mr Bare recommends that the state government maintain continuous support for the industry in order to keep it growing and improving.