We are Building More Properties in Australia!
Australians are investing into building more properties as house rates reached record rates. Australians also saw their approvals reach its peak as a huge interest over building apartments developed over time.
Although some may be quick to point out the increase is only modest for September, it did rise to 2.2 percent equivalent to 18,309. This is after the market posted a 9.5 percent decline in August. Further, the increase in September is beyond expectations set at 1 percent.
The year-over-year increase is thanks to the low base effect in September 2014. This trumps more than any rapid increase in approval numbers. Nonetheless, looking at the number of dwellings for the past year, it has already accounted for 230, 298.
Nonetheless, Business Insider does note that although there are approval gains, it is also important to see how the number of total buildings approved took a dive by 2.1 percent. It is a second consecutive decline. Residential building value also went down to 4.3 percent while non-residential building saw a 2.9 percent increase – this is after it fell 9.5 percent in August.
On top of these, as Sydney and Melbourne each saw an increase in Chinese investment over the years, recent information suggests that the interest may be shifting to Canberra. According to a report by ABC, wealthy Chinese investors are buying into Canberra suburbs especially Lawson and Gungahlin. For instance, Tony Pan, a developer, invested as much as $132 million on properties in Lawson and Amaroo.
“Big companies invest here, like Ikea, so we see this as an opportunity,” ABC quoted Pan.
“Besides there are so many other things happening in Canberra. “We’re expecting international flights to start and we have light rail.” He also noted that people should see beyond the competition with Australian buyers into the potential of the pouring investments.
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