Dwellings starts still in slump


p2312-Neilia-Ginnane-1NT Outlook reports there were 175 dwelling starts in the Territory in the September Quarter 2016, down 31.1% on the same period the previous year.
Neilia Humphries (pictured), from the Housing Industry Association, says it is expected that detached house commencements will fall by a further 14.7% in 2016/17, before a gradual improvement in 2017/18.
“The NT is currently in the midst of a post mining boom hangover, the worst of which is expected to occur in 2016/17,” she says.
“The forecasts do show a modest uptick in activity next year, however we consider this to be more of a plateau after the large decline in 2016/17 as opposed to a recovery.
“The decline is primarily due to a slump in multi-unit dwelling construction. This was the market that has really boomed with the resources sector.
“We expect activity in this part of the market to remain subdued until around 2018.
“Land supply for detached houses didn’t keep up during the boom years, and as a result there is still a pent up demand for detached houses.
“However, the softer economic conditions is likely to mean that some would-be buyers will hold off making major purchase decisions until they have more confidence in the economy.
“We expect to see evidence of this emerging in the latter part of 2017,” says Ms Humphries.


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