The Housing Industry Association (HIA) has projected a 16.3 per cent increase in NSW home starts for this financial year, a figure the organisation says will help to support a modest recovery of the residential construction sector and the wider real estate industry.
The growth, while impressive, should be further developed through government incentives and grants as well as bank policy in the coming years, says HIA NSW executive director David Bare.
"A reasonable recovery in 2012-13 will be driven by interest rate cuts (which will provide some impetus), the NSW government new home incentives for first time buyers, and renewed confidence stemming from some much-needed focus on policy reform from the NSW government," he said.
Renovations also saw some modest growth of four per cent in 2012-13.The following year is expected to see growth of 5.3 per cent to reach a total of 35,503 projects.
The current value of renovations under the four per cent forecast is just under $7.8 billion and with the expected growth of 1.7 per cent in the following year, the value will jump to over $7.9 billion.
