House building slows in Australia

The construction of new houses in Australia is beginning to slowdown, as more focus is being applied to the construction of high-rise development.  There does continue to be good interest from overseas investors as prices continue to grow in the country's major cities.

Commitments on new houses will drop by as much as 40% as the backlog of pencilled development continues to be completed.  The plan is to tail back house building until the start of 2019.

Many developers have been adopting renovations, as demand for property in city centre locations continues to grow.  This in turn is counteracting some of the decline experienced by limited new home building activity. By 2018/2019, renovations are forecasted to have grown by 6.5%, and will represent a value of over $32.96 billion per annum.