THE defining characteristic of the housing market today is that investors are being replaced by first home buyers, according to HIA\u2019s Principal Economist Tim Reardon.<\/p>\n
HIA recently released its National Outlook for 2018, which discusses the building activity cycle.<\/p>\n
\u201cThe supply of new housing is now closer to meeting the demand for housing than at any time since 2003,\u201d Mr Reardon said.<\/p>\n
\u201cThe enormous pent-up demand for housing in east-coast metropolitan areas is finally being met by a record supply of new apartments.<\/p>\n
\u201cThe boom in apartment building has already started to calm but with population growth remaining high, buoyed by strong overseas migration, we expect that demand for housing will remain at elevated levels for the next few years.<\/p>\n
\u201cInvestor activity in the housing market is continuing to cool as a consequence of punitive taxes and regulatory imposts on investors, but they are being replaced by first home buyers who have entered the market off the back of state government incentives.<\/p>\n
\u201cGovernment interventions into the market recently include: state governments imposing punitive Stamp Duty charges on foreign buyers, federal charges for foreign purchasers, a new set of visa rules that could slow overseas migration, restricting lending to domestic investors and new regulations limiting interest only lending.<\/p>\n
\u201cHIA is forecasting that building activity will decline modestly \u2013 from record highs \u2013 over a number of years, consistent with typical cyclical trends in the industry, activity will bottom out in 2019 with activity still at solid levels.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
THE defining characteristic of the housing market today is that investors are being replaced by first home buyers, according to HIA\u2019s Principal Economist Tim Reardon. HIA recently released its National Outlook for 2018, which discusses the building activity cycle. \u201cThe supply of new housing is now closer to meeting the demand for housing than at […]<\/p>\n