Media Release


Housing Recovery Signs Evident In New Homes Approvals



New house approvals in the December quarter of 2013, which recorded a 11% rise in activity, has provided clear evidence that the housing recovery is underway, the Urban Development Institute of Australia (UDIA) Victoria said today.

Tony De Domenico Executive Director UDIA Victoria 

Tony De Domenico, Executive Director, UDIA (VIC) said, "The latest UDIA BIS Shrapnel Quarterly Property Market Overview (March 2014) to be officially released today at the UDIA Outlook Briefing showed both Melbourne (+11%) and Regional Victoria (+ 10%) had good year-on-year growth in the December quarter."

Mr. De Domenico said, "The industry is encouraged by new separate house building approvals in the December quarter 2013 which escalated considerably in the South East, West and North West regions of Melbourne, suggesting improved demand for new houses in broad hectare land markets.

"Overall, new separate house approvals increased by a solid year-on-year 11.3% in December quarter 2013 in Greater Melbourne to 4,970 houses."

Mr. De Domenico said, given the fact in Victoria the development industry directly employs around 310,000 full time employees, contributes around 12 per cent of the state's gross domestic product and contributes $4.6 billion in taxes to all tiers of government, increases in housing activity can have a significant impact on local employment and local businesses as it also increases consumer demand for goods and services.

Angie Zigomanis Senior Manager - Residential, BIS Shrapnel Pty Ltd Angie Zigomanis, Senior Manager - Residential,BIS Shrapnel Pty Ltd said, "The removal of the first home owner buyers grant for purchasers of established dwellings in


Angie Zigomanis 
Senior Manager - Residential, 
BIS Shrapnel Pty Ltd

 Victoria from July 2013 was followed by a sizeable decline in the number of first home buyer loans, which in December 2013 remains 21% below loan approvals in December 2012.

"However demand from non-first home buyers (upgraders and downsizers) and investors has trended higher through 2013, with loan activity rising by 30% and 43% respectively in December 2013 in year-on-year terms.

"Stimulatory housing interest rates in 2013 have facilitated the ability of these buyers to increase borrowings, highlighted by the solid growth of established dwelling loan volumes.

"More recently, new dwelling loans have shown growth, likely in response to strong price growth for established dwellings through 2013 which has encouraged upgraders to trade up to a larger new dwelling, while also improving the value proposition for buyers of new homes that offer a more affordable price with land cheaper in mid to outer suburbs."

Mr. Zigomanis said, "Land price growth has re-appeared more broadly across Melbourne's growth corridors over the three months to December 2013, with both Melton (7.1%) and Casey (4%) achieving solid quarterly growth.

"Only Whittlesea recorded a quarterly correction in land prices and this suggests that low interest rates were starting to buoy demand for new house/land packages in most areas.

"However, land prices generally remained flat or declined over 2013 in Melbourne's growth corridors, with only Casey displaying some upward momentum in land prices.

"The most affordable land in the December quarter 2013 was in Mitchell, with a median land prices at $155,000, and the highest priced land was in Wyndham, where the median was $225,000."

Media Enquiries:
Ron Smith, Corporate Media Communications, UDIA (VIC) - Mobile: 0417 329 201