With the state government’s $10,000 new home buyer incentive now available from 1 August for owner occupier and investors alike, builders & selling agents of new residential dwellings in QLD are reporting a significant lift in buyer enquiry.
The early feedback is that the $10,000 Boost is already converting ‘would be buyers’ into sales. New house sales in QLD were down 17% in July according to HIA reports just to hand. It is most likely that this drop in activity is a direct result of the state government announcing the building boost $10,000 grant, but delaying its implementation for 7 weeks. A June/July dip in sales numbers has resulted as home buyers delayed their purchasing decision until August.
On the other hand residential construction work in the pipeline is growing. ABS data released 1 August 2011 shoes clearly that QLD has come out ahead of the rest of the country with an increase in dwelling approvals for the June Quarter. QLD compared favourably with the rest of Australia, with national approvals falling 4.3%. In contrast to a 7.1% QLD Increase in building activity.
There are now many signs that the QLD property cycle has bottomed after a 4 year period of declining values up to 30% in some areas.
Tim Lawless, RPData National Research Director was reported in the Australian Financial Review 28 July 2011 as saying: “Value proposition in Brisbane now was quite compelling.”
Residex Research CEO John Edwards predicts; “Over the next 3 years, Brisbane will see 6% p.a. growth compared with a national average of 4%” Residex national housing report, June 2011.
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