Signs of recovery in home construction

HOME building activity across Tasmania is on a gradual path to recovery after reaching near-record lows, according to figures released by the Housing Industry Association.

The number of new dwellings under construction in the state dipped to its lowest point in a decade during the last financial year.

However, data projections calculated by HIA economists show the industry has started to turn the corner.

A report released yesterday said home building activity across Tasmania was set to hit its strides over the next two financial years after dropping by 3 per cent in the last.

Data shows Tasmanian dwelling starts were forecast to grow by 5 per cent in 2014-15 and a further 8 per cent in 2015-16.

The trajectory would see the number of new dwellings built surge to 1700 for that year.

‘‘The figures over the past several years have not been positive but coming from a low base they’re now looking good,’’ HIA Tasmania executive director Rick Sassin said yesterday.

Mr Sassin said the $30,000 First Home Buyers’ Boost was largely responsible for the rise.

He said the HIA was optimistic that improving business confidence and early signs of an economic recovery were beginning to translate into positive property construction figures.

Renovation activity across Tasmania is also on track to post modern gains over the next three financial years, after growth in the sector bottomed out following consecutive periods of decline.

The value of renovation work in Tasmania is expected to reach $745 million in 2015-16.

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