Multi-unit building sees big boost

By Nick Syrimi

Nothing raises property prices quite like limited inventory, so news regarding construction is usually something savvy investors will want to stay apprised of.

According to data from the Australian Bureau of Statistics, the March 2014 quarter was a big one for home building, particularly when it came to multi-unit dwellings.

"Aside from a single quarter in 2010 when activity surged in response to fiscal stimulus during the financial crisis, the March 2014 quarter was the highest level of residential building work done in any other quarter on record," said Housing Industry Association economist Geordan Murray in a 28 May media release.

"The value of work done on multi-unit dwellings reached a new high in the March 2014 quarter, this is consistent with the indications from housing approvals data."

Mr Murray went on to say construction of multi-unit dwellings accounted for approximately two-thirds of growth during the quarter.

This is definitely news prospective buyers of residential property in Darwin will want to consider, especially if they're planning on entering the market by purchasing units in the central business district.

While factors like rental yields may play a part in an investment strategy, the availability of new units is also something investors will want to consider.

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