HIA - Housing Industry Association Ltd.
HIA - Housing Industry Association Ltd.
08/28/2024 | Press release | Distributed by Public on 08/27/2024 23:08
Modest recovery expected for NT home building
HIA released its Economic and Industry Outlook report recently. The report includes updated forecasts for new home building and renovations activity nationally and for each of the eight states and territories.
"The Northern Territory is estimated to have commenced construction on just 350 detached houses and 60 multi-units in 2023/24, the fewest since the ABS started this data series in 1984/85," added Mr Espinoza.
"This year is expected to see an improvement on the back of strong but thus-far-unsatisfied demand for new homes.
"The Northern Territory has seen record inflows of overseas migrants, against a backdrop of low unemployment, elevated dwelling prices and acute shortages of rental accommodation. This will sustain underlying demands for new housing, even as population growth moderates.
"Public spending is being directed towards remote housing, new subdivisions are getting underway, and there is optimism locally of incoming government announcements to catalyse greater activity in the home building and renovations sectors.
"Home building in the Northern Territory has had a hard time sustaining momentum over the last decade. The end of the last mining boom marked the beginning of a steep and prolonged downturn, and the pandemic boom is well and truly in the rearview mirror.
"Underlying demands would support much greater home building volumes, if investors and owner occupiers could be more confident of the Northern Territory's economic future.
"A major government or resources sector catalyst will be crucial to the next wave of sustainable development in the Northern Territory," concluded Mr Espinoza.
Detached house: The Northern Territory commenced construction on just 80 detached houses in the first quarter of 2024, down by 11.8 per cent on the previous quarter and the weakest quarter in almost 50 years. This is forecast to bounce back to 110 in the June Quarter 2024, producing a financial year total of 350 in 2023/24, down by 32.7 per cent on the previous year and a new record low. A modest improvement from here is forecast, reaching 630 by 2027/28.
Multi-units: There were just five multi-units commencing construction in the Northern Territory in the March Quarter 2024, down from eight in the previous quarter, and a new record low for a quarter. This is expected to bounce back to 30 in the June Quarter, producing a financial year total of 60 in 2023/24, also a record low year. Commencements are forecast to improve modestly from here, up to 120 in 2024/25, and continuing to 340 by 2027/28.