Australia's Forthcoming Construction-Led Property Boom

[Token Funder]

In my experience, CBA can't collude effectively with its own departments.

The chances of it managing to collude with anyone else is a stretch.

 

[Savanna100]

In my experience, CBA can't collude effectively with its own departments.

The chances of it managing to collude with anyone else is a stretch.

hahaha, gold !!!!

 

[Shadow]

Housing starts at six-year high

http://www.smh.com.au/business/housing-starts-at-sixyear-high-20100616-yeqn.html

Housing starts at six-year high
June 16, 2010 - 12:17PM

Builders started work on a total 42,399 new homes in the three months to the end of March, the biggest quarterly number in nearly six years, new data shows.

Dwelling commencements rose by a seasonally adjusted 4.3 per cent in the quarter, building on a revised 16.8 per cent jump in the previous three months, the Australian Bureau of Statistics said. Over the 12 months to the end of March commencements rose by 34.7 per cent...

 

[Ausprop]

this would just be the last thrash of the FHOG washign thru?

 

[Peter 14.7]

When you consider:

• starts are often 6 to 12 weeks after approval;
• no-one starts in late November or December due to industry shutdown
• everyone is on Holidays 4 weeks

January - March quarter is often high. March to June may show a difference but assuming a 12 to 15 week build time then jobs are secure untill june/july.

And in VIC you still have (reported) the majority of the 1800 homes lost in the Black Saturday Fires yet to get going.

"dark side clouds all" says Yoda AKA fundamentals are skewed says Peter

Peter

 

[ok180]

I work in the building industry as a subbie here in Sydney. There's probably less work coming through now then there was last year.

 

[Peter 14.7]

I work in the building industry as a subbie here in Sydney. There's probably less work coming through now then there was last year.

Kudo to OK180. This is real comment from the coalface. Unless you building tin sheds for $800k on schoolgrounds things are often tough.

Peter

 

[Sheryn]

The quality builders locally have plenty of work and some squeeze in their own developments.

The above is my interpretation after speaking to a 4 builders at a trade show.


Sheryn

 

[MichaelW]

I work in the building industry as a subbie here in Sydney. There's probably less work coming through now then there was last year.

Great! Come tender for some of the subbie work on my $1.3M build I'm kicking off next month in Mona Vale. All the other subbies are quoting astronomically high rates. And here I was thinking times were tough out there for trades...

Cheers,
Michael

 

[Ausprop]

Great! Come tender for some of the subbie work on my $1.3M build I'm kicking off next month in Mona Vale. All the other subbies are quoting astronomically high rates. And here I was thinking times were tough out there for trades...

Cheers,
Michael

it's a sad indication of structural weakness in our economy, with trades earnign more than engineers and doctors

 

[ok180]

Great! Come tender for some of the subbie work on my $1.3M build I'm kicking off next month in Mona Vale. All the other subbies are quoting astronomically high rates. And here I was thinking times were tough out there for trades...

Cheers,
Michael

We generally only work on projects 5m and up

 

[ok180]

it's a sad indication of structural weakness in our economy, with trades earnign more than engineers and doctors

I agree with that. Our cost per man is around $400.00 a day...

 

[ok180]

Kudo to OK180. This is real comment from the coalface. Unless you building tin sheds for $800k on schoolgrounds things are often tough.

Peter

Oh we did about 10 of those since last October. They have kept us churning but still not busy enough. Ive gone from employing 20 people 2 years ago down to 6 now.

 

[Ausprop]

I agree with that. Our cost per man is around $400.00 a day...

cheap, we've been payign $115/hr + GST plus all parts plus hire car charges and fuel and travel time with a T/A at $90/hr+GST...clockign up solid 40hr weeks, it gets up there

 

[ok180]

cheap, we've been payign $115/hr + GST plus all parts plus hire car charges and fuel and travel time with a T/A at $90/hr+GST...clockign up solid 40hr weeks, it gets up there

Where do i sign up?

 

[Token Funder]

As someone pointed out earlier, the rush of starts relate to the rush of contracts signed to beat the FHOB cut-off.

 

[MichaelW]

As someone pointed out earlier, the rush of starts relate to the rush of contracts signed to beat the FHOB cut-off.

Hi TF,

That may be true, but we're still experiencing record levels of sales in Sydney following the FHOB cut-uff. I can't speak for other cities, but think I read similar statistics for Melbourne.

Records despite falling clearances

Falling clearance rates can only be the result of two factors: increased supply and/or falling demand. There has been some fall-off in demand as six nearly consecutive interest rate rises put a dampener on potential home buyers' enthusiasm, as well as the wobbling of the equity markets.

But many sellers obviously thought May was still a good time to put properties on the market. In Sydney, more properties went to auction in May 2010 than in any month in the history of APM's auction data series, which dates back to 1989. May also saw more properties sold at auction than ever, with 2199 changing hands under the hammer or just before the auction.

In terms of value, May was the second-biggest month of auction sales, surprisingly trailing March this year. May, of course, had the advantage of five Saturdays, whereas March had the usual four weekends to record auction sales. Yet the record median auction price of $850,000 achieved in March meant that in terms of total value, it still holds the record. Still, just more than $1.9 billion of property was sold at auction in May, only the second time more than $1.5 billion has been sold.

The point is, yes, clearance rates are falling, and that will partly be due to a drop-off in demand, but a record month for volume of sales is still a record month. So falling clearance rates don't just reflect falling demand but also high supply. There are still plenty of sales being made in Sydney.

In Sydney in May we had another record month for value going under the auction hammer with $1.9Billion in total property sales at auction. That's only the second time in history its been above $1.5Billion. That does not sound like a waning market after a FHOB cut-off to me, much more like the robust healthy market that I am witnessing first hand.

March still holds the record and I also like that the median selling price in March was $850,000. The Sydney market is red hot right now, particularly the upper price points. I think 2010 median price growth will surprise to the upside.

Credit markets can't be too stuffed if we can still do record values of transactions in the current lending environment. Huge volumes of property changing hands right now.

Cheers,
Michael

 

[Token Funder]

Hi TF,

That may be true, but we're still experiencing record levels of sales in Sydney following the FHOB cut-uff. I can't speak for other cities, but think I read similar statistics for Melbourne.

Records despite falling clearances



In Sydney in May we had another record month for value going under the auction hammer with $1.9Billion in total property sales at auction. That's only the second time in history its been above $1.5Billion. That does not sound like a waning market after a FHOB cut-off to me, much more like the robust healthy market that I am witnessing first hand.

March still holds the record and I also like that the median selling price in March was $850,000. The Sydney market is red hot right now, particularly the upper price points. I think 2010 median price growth will surprise to the upside.

Credit markets can't be too stuffed if we can still do record values of transactions in the current lending environment. Huge volumes of property changing hands right now.

Cheers,
Michael

I was just responding to the comments around housing starts, not turnover of stock.

Credit growth remains slow in comparative terms.

 

[Shadow]

Back in 2008, I predicted that a construction boom would begin in Sydney, probably around 2011, and gradually spread to the rest of Australia. Well, it looks like I was a year out, but the expectation of a residential construction boom is certainly starting to gain traction in the media, especially after the RBA recently stated that it expects housing construction to take over from the fading mining boom as the main driver of Australian employment and economic activity over the coming years.

In 2011, the incoming NSW government also introduced a raft of measures aimed at boosting home construction, and more recently they announced changes to stamp duty and first homebuyer grants which deliver up to $35K to FHBs buying new dwellings.

The result...

http://www.businessspectator.com.au/bs.nsf/Article/Juicing-the-NSW-housing-market-pd20121011-YXRXZ

Around Australia first homebuyers are like a coiled springs just waiting to be released. NSW has found a way to release that stored energy and, while its early days, first homebuyers appear to have started a scramble for dwellings, which will transform the outlook for the NSW home building industry.

Just 11 days ago, on October 1, NSW introduced a package of measures aimed to deliver around $35,000 to first homebuyers of new dwellings priced at or under $550,000. There are also substantial, but lesser benefits for those who buy new dwellings up to $650,000.

Combine those NSW measures with the recent cuts in interest rates and the prospect of further rate reductions and the stored first home buying energy is being released.

But in the last 11 days Meriton orders from first homebuyers have soared and currently represent 45 per cent of all Meriton Sydney apartment sales

 

[Aaron Sice]

cheap, we've been payign $115/hr + GST plus all parts plus hire car charges and fuel and travel time with a T/A at $90/hr+GST...clockign up solid 40hr weeks, it gets up there

paying my guys $120ph mates rates to install a gas heater and flue kit, incl apprentice.

these guys were there within 2 days though, the ones charging $160ph are yet to call me back ..... 7 months later.....