Building conditions improve in Canberra: HIA National Housing Scorecard

Residential building conditions have slightly improved in Canberra, according to the Housing Industry Association’s National Housing Scorecard.

The half-yearly review assesses a range of industry indicators, with current conditions benchmarked against the long-term average.

The ACT moved up one place to fourth since the last report, following NSW, Victoria and Queensland.

The ACT topped the nation when it came to house financing, however a lack of new detached homes in the pipeline let the territory down, according to HIA ACT and southern NSW executive director Greg Weller.

“The report notes that if not for the boom in property prices in in Sydney and Melbourne, the ACT could well sit further up the table, which is a strong endorsement of the state of the industry,” Mr Weller said.

“Nonetheless, the Achilles’ heel of the industry right now remains detached home building, or more precisely, the lack of it.”

The report said improved building conditions were driven by low unemployment, wage rises and population growth.

“The ACT also topped the rankings in two of the 14 categories, including housing finance, which is a positive indicator for future building work,” Mr Weller said.

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The capital ranked second in housing finance for first home buyers.

The second category where the ACT led the pack was attached dwelling transfers, which Mr Weller said relates to a surge in unit construction.

Canberra ranked third nationally for dwellings under construction across both the detached and multi-unit markets.

“However, the territory ranks last in the nation for both approvals and commencements of detached homes, which goes a long way to explaining the dilemma facing Canberrans seeking to enter this part of market,” Mr Weller said.

“This in turn can be directly traced back to the high cost and limited release of land in the ACT.”