Homeowners in Australia should be delighted to know that the country’s housing market increased in value in the previous year, although at a slower pace, based on data from the Australian Bureau of Statistics (ABS).
The residential property market’s total value in 2017 reached $6.9 trillion, up by almost $93 billion, and comprised of 10 million houses. The increase included a five per cent growth in eight provincial cities, while the average price nationwide amounted to $686,700.
Hobart registered the highest annual price increase with a 13.1 per cent growth in prices, while Melbourne and Canberra trailed behind at 10.2 per cent and 5.7 per cent, respectively. In Sydney, house prices rose 3.8 per cent last year.
While the price increase appears to have slowed down, property developers still have good reason for building houses due to a relatively stable demand. Property developers and building contractors need to up their game and have quality control mechanisms in place to ensure building regulations are met, such as fire safety and waterproofing concrete. In Sydney, the New South Wales government introduced a new regulation in 2017 that aims to protect home buyers from ‘dodgy or unfinished work’.
The Strata Building Bond and Inspections Scheme requires property developers to pay a sum to NSW Fair Trading. Matt Kean, NSW Minister for Better Regulation, said that the building bond will be ‘equal to two per cent of the contract price with NSW Fair Trading’.
The agency launched the scheme after complaints about house builders cutting corners during the initial construction phase of strata developments. As a result, many owners were left with units with defects, such as leaky fixtures and rising damp, due to shoddy work.
House builders who plan to cash in on Australia’s housing market should take note that there are no shortcuts for construction projects. Something as simple as waterproofing will be important especially if you want to avoid a costly lawsuit.