Southern Gazette (South Perth) - - RESIDENTIAL -

EX­PERTS say while re­cent anal­y­sis of the state’s res­i­den­tial build­ing mar­ket fore­casts a chal­leng­ing pe­riod ahead for the new homes in­dus­try, they agree it will cre­ate greater op­por­tu­ni­ties for home­buy­ers across all mar­kets.

The Hous­ing In­dus­try As­so­ci­a­tion re­leased its State Out­look Re­port for WA in mid-March, re­veal­ing new home-build­ing ac­tiv­ity in the state was in de­cline.

Ac­cord­ing to the re­port, fol­low­ing a 6.7 per cent in­crease in new dwelling starts in 2014-15 to a record level of 31,160, a de­cline of 21.3 per cent was forecast for this year.

The re­port also stated fur­ther falls were ex­pected for 2016-17 and 2017-18, with to­tal new home com­mence­ments to bot­tom out at ap­prox­i­mately 20,840.

“It is im­por­tant to note that the mar­ket is com­ing down off record lev­els in 2014 of 32,100,” HIA WA ex­ec­u­tive di­rec­tor John Gelavis said.

“We have never been at this level ever in the his­tory of res­i­den­tial build­ing in WA.”

Sum­mit Homes Group agreed with the HIA pre­dic­tions but had not felt the ef­fects of the down­turn as much.

“We have had a buoy­ant start to the year al­ready although if we com­pare to­day’s fig­ures with the same time last year, we are ap­prox­i­mately down by 10 per cent,” Sum­mit New Homes gen­eral man­ager Tony Harvie said.

“The hous­ing mar­ket is very cycli­cal and there is no doubt the in­dus­try is in a down­turn now.

“It’s cer­tainly not the worst it’s ever been in our al­most 40 years of busi­ness but there has been times when it was per­form­ing stronger.”

Erick Erhard of Trowel Tech­niques, who has been a brick­layer for 37 years, said he had seen build­ing ac­tiv­ity go through ups and downs many times be­fore.

“In WA, the build­ing in­dus­try is al­ways boom and bust,” he said.

“There will be plenty of work around but when it starts drop­ping off, it drops off quickly, which is what has hap­pened since about Oc­to­ber or Novem­ber last year.”

Mr Erhard said be­cause work vol­umes were not as high as in pre­vi­ous years, trades­peo­ple were feel­ing the strain.

“Every­one’s a bit ner­vous,” he said.

“The builders can also dic­tate lower rates when the work vol­ume is low there and you have to take the work or not have work at all, but un­for­tu­nately the cost of liv­ing keeps go­ing up.

“But the pop­u­la­tion is grow­ing and there’s al­ways go­ing to be a need for hous­ing, so I hope it doesn’t stay in the down­turn for too long.

“I’ve been do­ing this long enough to know it’s not go­ing to be good all the time and I know it’s go­ing to get a lot worse for the next year-and-a-half be­fore it gets bet­ter again.”

Mr Gelavis said the big­gest pos­i­tive from the forecast was that it was now a buyer’s mar­ket for those look­ing to build a new prop­erty.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.