New housing demand remains on a high particularly in Queensland

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A recent “Australian Bureau of Statistics” (ABS) housing finance data report has shown that investors remain very keen to invest in brand new property.

According to the “Housing Industry Association” (HIA) the effect of tighter lending guidelines is yet to be felt.

Lending to investors who construct new homes increased 11.7% in July to reach a new all-time high.

“Investors have played a major role in the current new home building cycle, contributing a larger share of new housing supply than has historically been the case,” said HIA economist Diwa Hopkins.

The total number of loans to owner-occupiers purchasing or constructing new homes remained relatively unchanged in the month, and was 9.4% lower than its peak in September 2014.

Diwa Hopkins also warned the impact of tighter investor guidelines introduced by the “Australian Prudential Regulation Authority” (APRA) are yet to be felt.

“We maintain our concern about recent APRA interventions – there is a risk of disruption to new home building activity.”

South East Queensland, and in particular the Gold Coast are showing very strong growth in new housing demand. This growth and demand is supported by the huge investment in commercial and infrastructure expansion.

Close to $13 billion is being invested in major infrastructure projects across the Gold Coast including;

·         Major transportation infrastructure

·         Integrated health and knowledge precinct

·         World-class sporting infrastructure

·         Revitalisation of the CBD

·         Development of iconic parklands

·         A new cultural precinct

Leading Australian Demographer Bernard Salt said in a recent report earlier this year - By the mid-21st Century the Gold Coast region is projected to be home to 1.2 million residents and welcome an even greater number of tourists annually.

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