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The latest figures for new home building has crowned Victoria as the nation's leading state in the half yearly review of residential building conditions across Australia.
The Housing Scorecard report ranks each of the eight states and territories based on the performance of twelve key residential building indicators, an analysis presented by the Housing Industry Association.
Victoria’s key strengths were in approvals for alterations and additions, lending to first home buyers, and detached homes under construction.
HIA’s acting principal economist Geordan Murray said Sydney and Melbourne’s housing markets had provided a solid environment for residential building in recent years.
“But we are now in a new phase of the housing cycle,” Murray said.
“The housing market has softened considerably over the second half of 2018 and it will be increasingly challenging for these two states to continue outperforming.”
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| RANK | STATE | STATE SCORE |
|---|---|---|
| 1 | VIC | 74 |
| 2 | NSW | 69 |
| 3 | QLD | 63 |
| 4 | ACT | 62 |
| 5 | TAS | 56 |
| 6 | SA | 55 |
| 7 | NT | 29 |
| 8 | WA | 24 |
NSW performed strongest in indicators tracking detached house approvals, new home commencements for both detached and multi-units, and new homes under construction.
While the state's weakness was in expenditure on alterations and additions, lending to first home buyers and net interstate migration.
Murray said the strengthening markets of Queensland, Tasmania or the ACT looked capable of swiping the top spot from the two capital city heavyweights.
“Each of these states has a strength, Queensland with renovations, Tasmania with detached home building and the ACT with multi-unit building,” Murray said.
“To ascend to the top of the table they will need to improve in other areas.”
Queensland taking third place was partly due to improving net interstate migration, rating as its second strongest jurisdiction on this metric.
While the market in Western Australia is strengthening Murray says the path to recovery is still a long one, with the state coming in at the bottom of the list.
“There are signs of improving conditions in the broader state economy but these are yet to translate into any improvement in residential building,” he said.
