The residential construction sector has been growing steadily, and new housing finance figures released recently indicate further strengthening in the sector.
In 2012/13, recovery in the residential construction sector was driven by two states primarily: New South Wales and Western Australia, but recent figures indicate that the nearly all the major states and territories are now contributing to the growth.
Loans for construction of new homes rose by around 1% and those for the purchase of new homes rose by around 3.6%. These new figures have been welcomed by building industry groups, with Housing Industry Association Chief Economist Harley Dale mentioning that these figures support the expected positive outlook for the industry in the coming year. Master Builders Australia Chief Economist Peter Jones also shared the same views.
As construction activity in some sectors slows down, opportunities for contractors lie ahead within maintenance work, as spending is set for growth in the next few years.
Good news for those in building and construction: thanks to the apartment building boom, professionals and tradespeople are highly in demand.
As the market regains its strength, we take a look at what is forecast for the industry’s future.