Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter
New dwellings boost GDP growth

New dwellings boost GDP growth

New home building helped Australia’s GDP growth finish “relatively favourably and beating expectations” in 2015, according to one industry economist.

Figures recently released by the Australian Bureau of Statistics (ABS) showed that GDP increased by 0.6 per cent during the December 2015 quarter.

Shane Garrett, senior economist at the Housing Industry Association, noted the annual growth rate in the December quarter “hit the crucial 3.0 per cent threshold, which is consistent with the economy’s trend rate of growth”.

Advertisement
Advertisement

“New residential building played its part in beefing up the numbers,” he said. “During the quarter, new dwelling construction rose by 3.6 per cent, and was some 12.1 per cent higher than the same period one year earlier.

“One of the big messages from [the ABS] figures is that household spending growth was strong over the past year, and this was helped along by very low interest rates and strong dwelling price growth in key markets.”

Mr Garrett said the “low and stable” exchange rate for the Australian dollar is doing its job in boosting export volumes, but business sentiment remains under pressure, particularly in the natural resources area.

“This will continue to drag on growth over the coming quarters,” he added.

[Related: Detached houses help lift new home sales]

New dwellings boost GDP growth
mortgagebusiness

 

Latest News

The Australian Securities and Investments Commission has commenced a court case against NAB over allegations that 16 bankers accepted loan i...

The CEO of an ASX-listed mortgage business has seen demand for housing loans “rise significantly” in response to the recent shift in sen...

The non-major has reduced variable and fixed rates across its owner-occupied and investment home loan products. ...

FROM THE WEB
podcast

LATEST PODCAST: Acquisitions and evolution

Do you think the mortgage market will see more consolidation this year?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.