Western Australia has the strongest residential building industry in the country, according to a new report by the Housing Industry Association (HIA).
The inaugural Housing Scorecard evaluates the residential building industry in each state on 13 key indicators.
Western Australia’s economy has been growing quickly due to mining investment and strong population growth, but until recent times its residential building sector has lagged behind, according to HIA chief economist Harley Dale.
“The stronger conditions more recently have taken WA to the number one position for the first time in over five years,” Mr Dale said.
The Australian Capital Territory comes in second place, with Victoria in third.
The New South Wales building industry has experienced an uplift in activity after almost a decade of slow growth, Mr Dale said.
He reported new home building was the main driver of this trend, although the renovations segment remained weak.
“Overall, residential building conditions in NSW still rank only fifth nationally, but there is clearly some positive momentum there,” Mr Dale said.
Tasmania experienced the country’s lowest levels of residential construction activity.
“It was not so long ago, back during the financial crisis, that Tasmania was the top-ranking state for residential building,” Mr Dale said.
“Unfortunately, the state’s broader economy has undergone a marked deterioration since then and the weaker demand conditions delivered a big hit to the state’s residential building industry,” he said.
Your enquiry has been sent to a local Aussie Mortgage Broker.
We will be in contact with you shortly.
- Give expert mortgage advice to help you find great investment loan deals
- Help you maximise return by lowering financing costs
- Save you time and effort by helping with the paperwork