Building approvals for residential property have experienced a positive start to the year in South Australia. Additional construction projects will hopefully help to meet the demand of houses and drive down prices for buyers of real estate in Adelaide.
January saw building approvals increase by a remarkable 10.5 per cent to reach of a rate of 1,059 a month, according to data from the Australian Bureau of Statistics. This activity has resulted in a three month increase that is 19.6 per cent higher than the previous quarter, showing a growing demand for property.
Measures by the South Australian government have helped increase housing availability for home buyers looking to acquire property in Adelaide. For instance, the Housing Construction Grant included funds of up to $8,500 available to all home buyers building a home to the value of $450,000. These properties could be for investment or residential purposes. However, this grant concluded at the end of December 2013.
It is predicted that with the assistance of this past scheme, the construction industry will continue on a positive note.
“While the grant’s conclusion does present some degree of uncertainty, the latest approvals results are signalling improving prospects for SA’s residential construction sector in 2014,” said HIA Executive Director, South Australia, Robert Harding.
Although the property market can be difficult to break into, the prospect of more housing is positive for those seeking to buy a home or invest in property.