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Australia’s housing recovery mirroring that of other nations

Housing demand has gained momentum over recent months in Australia with prices and new construction picking up sharply. Activity has been particularly strong for houses and in regional markets.Australia’s recent experience has not been unique. Over the past six months, new house approvals and prices have also lifted in the United States, Canada, and New Zealand, despite experiencing considerable variation in the severity of the pandemic and related restrictions. In each instance, very low interest rates, elevated household savings and shifts in preferences are fuelling the resurgence in housing investment. This clear commonality of drivers across countries suggests that robustness in housing demand will extend beyond the conclusion of the HomeBuilder program in Australia. Adding confidence to a positive outlook, the consistent strength across markets is supportive of upside to the forecast profile through 2021 and 2022.

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