There is promise of rebound of Australia’s housing business that has been on the downturn. Other related businesses, like commerce of slate roof in Sydney, could not be far behind.
John Beveridge, an experienced business journalist and former Herald Sun’s chief business writer, wrote on Small Caps, an Australian-based market news site, that a number of indicators show the property market is on the way to recovery.
It should be recalled that the property market took a downtrend towards the holding of the Federal Elections,the result of which led to the disappearance of controversial tax policies. Thence, real estate interest started to return.
Rising Application for House Loans
Affirming Beveridge’s view is the information gathered from Matt Comyn, Commonwealth Bank chief executive, that applications for home loans in his bank is on the rise. He said that said applications rose to a 10-month high during the week after the surprise win of Coalition.
Mr. Comyn did not say the application upsurge indicated a market turn. But he mentioned that the improved certainty in policies related to housing, in combination with cuts in rates of interests and taxes are helps in stabilizing the property market.
Speaking at a Sydney lunch meeting of Trans-Tasman Business Circle, Mr. Comyn said that there was big sentiment shift, coming from a demand perspective.
Similarly, mortgage brokers reported signs of loan application recovery after the election.
Recovery in Prices by July
Historical information, according to the equities strategy team of Macquarie Bank, reveals that a huge leap to recovery happens after property prices’ peak decline. This could come in July.
Along with its forecast, Macquarie reiterated that cuts in interest rates, easy lending conditions and results of the recent election are factors in the recovery of the market.
A Macquarie research report expressed confidence that prices of Australian houses on the market will rise, and will flow to better housing finance growth and “building approvals”.
Prospect for the business of installing slate roof in Sydney
Aforementioned predictions mentioned among others, of resulting building approvals.Alongside the housing market is the roof installing business. Low-priced houses on the market but with roofs nearing their life expectancy’s end necessitate for new roof to be installed.
Slate roof in Sydney would be a wise pick since the material is not only attractive, it could also last for years if installation is handled by highly skilled contractors.