Building Steady beyond the end of Homebuilder
Building work done on new homes remains high, according to data released this week by the Australian Bureau of Statistics. The latest figures show that new residential building completed remained flat in the September quarter 2021, to be 7.0 per cent higher than at the same time last year.
The results are echoed by the latest Outlook Report released by the Housing Industry Association (HIA), which shows that demand for both new detached and multi-unit housing has remained strong, suggesting that the current boom in home building will be sustained throughout 2022.
Releasing the report, HIA Chief Economist Tim Reardon said that demand for new detached home construction has remained strong because of economic lockdowns.
“There has been a clear shift towards lower density housing during the pandemic and this trend does not appear to show signs of slowing. As a result, we have seen a significant change in the volume, type and location of new homes. These trends are similar in other countries. Leading indicators of demand show that the demand for new detached homes remains strong. Sales since the end of HomeBuilder (April 2021 – October 2021) are the strongest they have been since 2017 when over 115,000 detached homes commenced construction.”
This strong level of home building activity suggests that the current boom in residential construction will be sustained throughout 2022. Reardon suggests that the shift to lower density is also the likely driver of recent demand for multi-units.
“Investors are looking through the haze of the pandemic to a brighter outlook on the other side. Affordability constraints are also pushing households, particularly first home buyers, back to townhouses and apartments.”
Source: EPS Property Search