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A partner at DAE (Deloitte Access Economics) favoured that despite of wide gaps between the people salaries and house prices, Q4 2015 will definitely bring more new home constructions and provide more approvals for housing projects appealed by new home builders Melbourne, Australia than ever happened.
Michael Thomas acknowledges, “As per Australian reported, the parts of Sydney and Melbourne are still suffering from escalating home values and unmoving salaries.”
At the launch of Deloitte’s Tenth Annual Mortgage Report, he also added, “There is a strong likelihood that we’ll have seen more new residential buildings, in comparison to prior years, built in Australia by the end of 2015.”
This launched of Deloitte was published in late 2014 describing the percentiles of residential buildings in Australia. It has been reported that the residential buildings will go up by 8 per cent on the year to September as compared with over 6 per cent for 2013 and negative figures from 2011 to 2012.
Michael further said, “It will likely to be a record in 2015 for the value of new housing built and overall, property price growth will be a fair way south of what is going to happen in Sydney and Melbourne.”
James Hickey, another Deloitte partner, also dismissed the fears of a housing bubble but remained cautious that problems could rise if property prices continue to outpace the wage increases.
As per his considerations, Interest rates are at record lows around 4.65 per cent with discounted variable loan rates. “Moreover, the mortgage defaults made a record with less than 15 basis points.” he added.