‘Safe haven’: ACT leads the country in latest HIA report

The ACT has topped the nation in the latest Housing Industry Association Scorecard Report for the first time since 2014. The capital jumped from sixth place in mid-2020.

The six-monthly HIA report measured the performance of 13 key residential building indicators of each state and territory including detached and multi-unit building activity, home loan activity, renovations and rates of overseas and interstate migration.

The report ranked each state from one to eight, eight being the strongest state. The ACT recorded a total score of 78, the highest score of any state, followed by Tasmania at 68 and Queensland at 67.

The ACT was the best performer in the number of new home approvals for multi-unit dwellings, the number of multi-unit dwellings being constructed, the number of loans granted to non-first home buyers, and net interstate and overseas migration.

“In the space of six months, the ACT has jumped from having the second-weakest net overseas migration figures in the nation to the strongest,” the report read.

“The capital has also jumped from the weakest net interstate migration figures in the nation to the strongest, in a single quarter.”

There was a strong chance that the state border closure forced many Canberrans to stay put while many Victorians and residents of NSW decided to make the move to the capital, the report added.

“This reflects the movement of population from larger capitals to the ‘safe haven’ of regional areas, whether to take advantage of new opportunities to work remotely or to return home due to loss of work in tourism or hospitality,” said HIA ACT and Southern NSW executive director Greg Weller.

Mr Weller said despite the capital’s strong performance, he was concerned about the number of new home approvals for detached dwellings, for which the ACT ranked last.

“This is no doubt related to the stellar performance of HomeBuilder in other states, but 2020 will also likely reflect the second year running that the monthly average approvals in the Territory have fallen below 100, which is something that needs to be addressed,” he said.

HIA economist Tom Devitt said the capital benefited from steady population growth and a stable labour market despite the pandemic, which saw other jurisdictions’ activities plummet.

“This has supported strong demand for new homes and renovation activity, which has been boosted by the HomeBuilder program,” Mr Devitt said.