This article is from the Australian Property Journal archive
THE housing boom will carry on at unprecedented levels despite uncertainties of possible interest rate rises and the forthcoming Federal election.
According to the Royal Australian Institute of Architects’ building advisory service Archicentre, house sales and home renovation plans in the first half of September are well above the corresponding period last year and are accelerating.
Managing director Robert Caulfield pre-purchase inspections were up 11%; home renovation concepts up 69%; owner builder inspections up 88%, whilst architects advice reports were down 18%.
Caulfield said the jump in renovation concepts and owner builder inspections reflect the massive explosion of renovations as people moved to build on the value of equity in their homes.
“Instead of spending $50,000 to move in government taxes and charges, home owners are adding to their lifestyle at home.
“Archicentre undertakes about 25,000 reports a year and history has shown that there is a delay of about one month between the pre-purchase inspection and a house sale, and six to nine months between a renovation design and construction starting, so the economy will still be booming well into next year,” Caulfield said.
Meanwhile, Caulfield said the political spin on Australian housing affordability as the country moves towards a Federal election is contributing to some doom and gloom views of the sector.
“Check with any tradesperson and they are run off their feet completing projects with more planned.
“The property market is still very strong, home owners aren’t so worried about problems in their homes, people are confident about spending money on home improvements and more homes will be coming onto the market. House prices will most likely continue to rise,” he concluded.
Australian Property Journal
