Victorian detached home building defies downturn
September 03, 2019
HIA has just released its quarterly economic and industry outlook reports. The Reports include forecasts for new home building and renovations activity for Australia and each of the eight states and territories.
The detached housing market has held up especially well in Victoria, with starts up by 6.4 per cent to 10,015 homes in the March 2019 quarter – amongst the strongest quarters on record for the State. But HIA is anticipating that this market will slow in the coming years. This resilience in these figures is partly due to the lag between the sale and commencement of construction of the houses. Nonetheless, Victoria is well placed to mitigate the impact of any slowdown in this market on the State’s economy.
Victorian detached house starts in the 2018/19 financial year are expected to be down by around 3.7 per cent compared with 2017/18. Starts in this part of the market are expected to post a further decline of around 13.0 per cent in 2019/20. A further decline of 7.3 per cent is forecast for 2020/21.
Read the media release
Download HIA’s Victorian Outlook