Construction boom shows little sign of abating

Posted by Design & Construct on 05-May-2015 02:33:41

In Construction


Australia's construction boom has been the envy of many other developed countries for some years now, but is it showing any sign of slowing down?

The latest analysis would suggest not, as industry experts and facts and figures point to as much momentum in the sector as there has ever been.

Admittedly, some parts of the country are performing better than others, which is something any company recruiting for construction jobs will no doubt be aware. The latest HIA/ACI Population and Residential Building Hotspots report reveals that Western Australia is a hotbed of activity at the moment, with Victoria and New South Wales not far behind.

Australia remains a popular place to live, and the sector will need to increase its pace if the needs of the growing population are going to be met.

Economist at the Housing Industry Association (HIA) Diwa Hopkins explained that six of the top 20 hotspots were located in WA, while Victoria had five and NSW four.

Ms Hopkins continued: "For a second consecutive year, it was the Australian Capital Territory that was home to Australia's number one building and population Hotspot - the territory's South West area.

"Second place was the Northern Territory's Palmerston South area. The ACT was also home to Australia's number three Hotspot, the suburb of Crace."

The future of the boom

Of course, these figures point to what is going on at the moment - but is there much of a future for construction? Economics Editor for the Business Spectator Callam Pickering seems to think so, as he told The Australian on April 6 that the boom is "likely to be more persistent than previously thought".

Apartments are in particularly high demand at the moment, Mr Pickering highlighted, with the eastern capitals largely proving the markets to watch.

There are already high hopes that Queensland's construction surge will continue for some time yet, which is being helped by strong population growth in the state. It ranked third in terms of population growth in the latest CommSec State of the States report, illustrating that people are keen to move to this area.

Construction continues to thrive.
Construction continues to thrive.

Meanwhile, the Deloitte Access Economics Business Outlook report for the March quarter showed that housing construction is performing well in Queensland, with economic growth forecasts being upwardly revised.

Mr Pickering conceded that it is almost impossible to forecast what the future has in store for national construction, but there is every reason to be optimistic. Australia remains a popular place to live, and the sector will need to increase its pace if the needs of the growing population are to be met.

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