Deloitte foresees rise in new housing later this year

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A partner at Deloitte Access Economics is positive that Q4 2015 will bring more new housing in Australia than ever, despite the widening gap between house prices and salaries.

Michael Thomas acknowledges that parts of Sydney and Melbourne are suffering from soaring home values and unmoving salaries, The Australian reported.

“There is a strong likelihood that by the end of 2015 we’ll have seen more new housing built in Australia than in any prior year,’’ he said as he spoke at the launch of Deloitte’s 10th annual Mortgage Report.
 
The launched report was written in late 2014 and said that residential building across Australia went up 8% on the year to September, compared with over 6% for 2013, and negative figures from 2011 to 2012.
 
“The value of new housing built is likely to be a record in 2015,’’ he said. “Overall, property price growth will be a fair way south of what’s happening in Sydney and Melbourne’’.
 
Another Deloitte partner, James Hickey, also dismissed fears of a housing bubble but remained cautious that problems could emerge if property values continue to outpace wage increases.
 
 “Interest rates are at record lows with discounted variable rate loans around 4.65%, and mortgage defaults are less than 15 basis points, which is a record now,’’ he said. 
 

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