BIGGER BUILDING BOOM
NATHAN MAWBY
A RECORD year of housing construction in Australia is set to be even bigger than first expected.
The Housing Industry Association is forecasting more than 143,700 new builds this year, and that renovation activity will also hit record levels.
In February, it predicted there would be 130,000 detached homes built in 2021.
The new figure is 20 per cent higher than the 120,000 detached home construction record set in 2018.
Housing Industry Association economist Angela Lillicrap said the surge in activity would keep tradies and builders busy until the second half of 2022, and would not be repeated for years or even decades.
“The key challenge for the industry has shifted from a slump in demand this time last year, to having sufficient supply of materials, labour and land to satisfy this demand,” Ms Lillicrap said.
She noted that with the federal government’s $25,000 and $15,000 HomeBuilder grants schemes driving many of the builds, a recent extension to the time punters had to get their build underway would alleviate some of the trade and supply shortages issues.
The HomeBuilder scheme attracted more than 121,000 applications around the nation, 99,253 of them for new homes. It is also expected to drive 22,110 renovations.
Applications closed in March, but the timeline to commence construction has since been extended from six months to 18 months.
However, the association is warning multi-unit projects will decline across this year due to no international migration in more than 12 months.
About 57,100 apartments, townhouses and units are expected to be built nationwide, a 17 per cent decline from 2020.
A return of international migration is also needed to alleviate a forecast 93,500 new housing starts trough anticipated for 2023.
The federal government’s 2021-2022 budget did not include any significant boosts for the new home sector.
Housing and Homelessness shadow minister Jason Clare said the reduction in construction when HomeBuilder’s effects “dry up” were concerning.
Mr Clare touted Labor’s $10bn Housing Australia Future Fund as a means of filling the void in jobs and economic activity.
PROJECTS INCOMING:
Tasmania - 3430
New South Wales – 27,880
Victoria – 43,770
Queensland – 30,930
South Australia – 11,430
Western Australia – 24,110
Northern Territory – 760
Australian Capital Territory – 1430
Source: HIA