WA leading charge in national new build craze

New house construction in Western Australia doubled in the final quarter of 2020, according to the latest Housing Industry Association (HIA) findings.

The HIA findings show that on a national level, new home constructions reached their second highest level on recordin the December 2020 quarter, surging by 27 per cent.

WA recorded the biggest percentage increaseof all states and territories, with new house constructions increasing by 108.5 per cent during the quarter.

This was followed by the Northern Territory (up 51.7 per cent), Queensland (up 33.2 per cent), New South Wales (up 21.2 per cent), South Australia (up 13.1 per cent), the Australia Capital Territory (up 11.7 per cent), Victoria (up 9.9 per cent) and Tasmania (up 5.8 per cent).

HIA Chief Economist Tim Reardon said nationalnew housingcommencements had reached the highest level recorded since March 2000.

This record level of investment in new home building occurred six months after the announcement of theHomeBuilderprogram. The increase in commencements occurred across all jurisdictions.

The segment of the market that has driven the bulk of this record level of demand is first home buyers who have accounted for over 40 per cent of all loans in recent months. This contrasts with the investor-driven demand of the previous cycle,MrReardon said.

For more local real estate information, visit out WA market page.

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