The Reserve Bank of Australia has adopted a gloomy view of the overall economy but it remains optimistic about the housing marketing. It has stated that low interest rates, strong population growth and a retargeting of government grants had helped generate a “strong recovery” in housing investment.
Looking forward, there are several indicators that suggest a positive outlook for the housing sector.
“Forward-looking indicators of dwelling investment, such as approvals, commencements and work yet to be done, remain at high levels and will support growth of dwelling investment in coming quarters,” it said.
“Dwelling construction is expected to continue to expand later in the forecast period in response to low interest rates, strong population growth and only limited construction over the past decade.”