House prices have increased by 40 percent across the eight capitals since May 2012: HIA

House prices have increased by 40 percent across the eight capitals since May 2012: HIA
House prices have increased by 40 percent across the eight capitals since May 2012: HIA

House price growth is set to slow in Sydney and Melbourne while other capitals will make up lost ground, the Housing Industry Association has forecast. 

It estimates since prices bottomed out during May 2012 that detached house prices have increased by 40 per cent across the eight capitals between May 2012 and July 2016.

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House prices have increased by 40 percent across the eight capitals since May 2012: HIA

The largest house price rise occurred in Sydney over this period (+65.7 per cent), followed by Melbourne (+45.2 per cent) and Brisbane (+18.6 per cent).

HIA senior economist Shane Garrett estimates that building materials demand for the construction of new detached houses peaked last year, and will see some easing back over the remaining years of the decade.

"The market has seen significant expansion since hitting a low point in 2012," he said.

"In the case of plasterboard, for example, demand bottomed out 56.55 million sqm in 2012 before growing to 70.98 million sqm in 2015 as a result of the upturn in activity.” 

Tags: 
Residential Market Dwelling Construction

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