Australian Housing Developers Employ Creative Tactics to Move Inventory
Announcement posted by Next Level Extensions 22 Mar 2013
Builder of home extensions and second storey additions in Perth reveals how homeowners can take the risk out of obtaining more living space.
Balcatta, Western Australia March 21, 2013 - All across Australia, housing developers are finding creative ways to provide discounts to entice more buyers. Although Perth and Western Australia have a thriving economy courtesy of the mining boom, even their housing prices have not returned to their peak levels, which were attained shortly before the global financial crisis.
Many economists currently view Australia as having an economy that consists of two tiers: Western Australia and the rest of Australia. While prices are rising in the Perth area and in other cities that have benefited from the mining boom, the housing market in most other Australian cities is recovering more slowly. Consequently, many housing developers and builders are finding themselves in a position where they are offering discounts and rebates to stimulate more movement in the market.
For example, Australia’s largest developer, Stockland, is offering rebates for as much as $30,000 to those who buy homes in their communities located in New South Wales, Queensland, or Victoria. In South Australia, Devine is offering matching deposits, and even taking over as many as the first 12 months’ mortgage payments.
Since November 2011, the Reserve Bank interest rate has been cut a total of 1.75 percentage points, but the results have been negligible in many parts of Australia. In December 2012, Australian new home sales were down 6.6% from December 2011. New home loan approvals were down 31% from their high-water mark in October 2009.
Many developers maintain that the market for new homes is the worst they have seen in 20 years, and have little faith that it will improve in 2013. December 2012 home building approvals fell 4.4% from the previous month. However, they were 9.3% higher than they were in December 2011. While this would appear to be cause for celebration, it falls far short of the predicted rise of 14.9%.
Home prices across the eight major Australian cities fell 0.4% in 2012, averaging $483,000. Melbourne saw the biggest decline; they were down 2.9%. While Perth has one of the healthiest economies in Australia, home prices only rose 0.8% in 2012, and one new home builder has gone so far as to offer discounts of $10,000 to entice buyers.
According to Craig Johns, Director of Next Level Extensions, there are plenty of reasons why the housing market is not growing as fast as the rest of the economy appears to be: “These statistics don’t surprise us in the least. While the economy has made great strides, and we are really happy to see people beginning to get back on their feet, a lot of people aren’t quite comfortable in declaring that we are all the way back.”
Johns continued, “Western Australia, and Perth in particular, have benefited greatly from the mining boom, but a lot of people see the mining boom as a double-edged sword. While the mining boom has brought us a lot of jobs, it has also made many of us dependent on the mining industry.”
Johns concluded, “Many people are choosing to build on to their current home, doing home additions and renovations, instead of buying a new one. They get the benefit of increased living space without the financial stress involved in buying a larger home.”
Next Level Extensions builds home extensions and second storey additions in Perth and the surrounding areas.
For more information on how to increase your living space without moving or buying a new home, call 08 9240 5888 or visit their website: http://www.nextlevelhomes.com.au/.
Many economists currently view Australia as having an economy that consists of two tiers: Western Australia and the rest of Australia. While prices are rising in the Perth area and in other cities that have benefited from the mining boom, the housing market in most other Australian cities is recovering more slowly. Consequently, many housing developers and builders are finding themselves in a position where they are offering discounts and rebates to stimulate more movement in the market.
For example, Australia’s largest developer, Stockland, is offering rebates for as much as $30,000 to those who buy homes in their communities located in New South Wales, Queensland, or Victoria. In South Australia, Devine is offering matching deposits, and even taking over as many as the first 12 months’ mortgage payments.
Since November 2011, the Reserve Bank interest rate has been cut a total of 1.75 percentage points, but the results have been negligible in many parts of Australia. In December 2012, Australian new home sales were down 6.6% from December 2011. New home loan approvals were down 31% from their high-water mark in October 2009.
Many developers maintain that the market for new homes is the worst they have seen in 20 years, and have little faith that it will improve in 2013. December 2012 home building approvals fell 4.4% from the previous month. However, they were 9.3% higher than they were in December 2011. While this would appear to be cause for celebration, it falls far short of the predicted rise of 14.9%.
Home prices across the eight major Australian cities fell 0.4% in 2012, averaging $483,000. Melbourne saw the biggest decline; they were down 2.9%. While Perth has one of the healthiest economies in Australia, home prices only rose 0.8% in 2012, and one new home builder has gone so far as to offer discounts of $10,000 to entice buyers.
According to Craig Johns, Director of Next Level Extensions, there are plenty of reasons why the housing market is not growing as fast as the rest of the economy appears to be: “These statistics don’t surprise us in the least. While the economy has made great strides, and we are really happy to see people beginning to get back on their feet, a lot of people aren’t quite comfortable in declaring that we are all the way back.”
Johns continued, “Western Australia, and Perth in particular, have benefited greatly from the mining boom, but a lot of people see the mining boom as a double-edged sword. While the mining boom has brought us a lot of jobs, it has also made many of us dependent on the mining industry.”
Johns concluded, “Many people are choosing to build on to their current home, doing home additions and renovations, instead of buying a new one. They get the benefit of increased living space without the financial stress involved in buying a larger home.”
Next Level Extensions builds home extensions and second storey additions in Perth and the surrounding areas.
For more information on how to increase your living space without moving or buying a new home, call 08 9240 5888 or visit their website: http://www.nextlevelhomes.com.au/.