Construction companies turn their attention to detached homes

Posted by Design & Construct on 06-Aug-2015 04:33:03

In Construction

Australia's multi-unit dwellings have been thriving for some time, but it seems that detached homes may be starting to make their mark.

The trend has emerged for various reasons. Not only has construction of this property type increased, but it's also possible that the all-time low cash rate is giving people the confidence to seek loans on bigger properties.

The current state of detached housing construction

The latest available figures cover June this year and indicate strength across the detached house construction market. Data from the Australian Bureau of Statistics (ABS) reveals that in trend terms, dwelling approvals have been declining for four months and were down 1.2 per cent during the month in question.

The ACT, Tasmania, Queensland and the Northern Territory all experienced rises in approvals between May and June.

However, as the Housing Industry Association (HIA) is keen to point out, this doesn't necessarily mean bad news for construction recruitment.

"Detached house approvals have been tracking fairly steadily at relatively strong levels for the past 18 months," revealed HIA Economist Diwa Hopkins.

"Approvals in this segment of the market have maintained an average of 9,650 per month since January 2014. The last time such levels were similarly maintained was over a decade ago."

The ABS indicated that results have varied across the country. The ACT, Tasmania, Queensland and the Northern Territory all experienced rises in approvals between May and June. In the other states, approvals were down month on month.

Rising confidence plays a part

Home buyers throughout the country have benefited from low interest rates since May, which has apparently had a positive effect on consumer confidence. The latest ANZ/Property Council Survey shows that the outlook was bright during the June quarter, which continued into the three months to September.

It's not just industry professionals who are upbeat either. The ANZ-Roy Morgan Consumer Confidence Index for the week to July 28 also pointed to improved sentiment, with people especially optimistic about the future of their finances.

This bodes well for the recruitment of site managers, foremen and estimators - among other roles - as this is likely to give people the impetus they need to get onto the property ladder.

Consumers were found to be increasingly confident about how their finances are faring now and in 12 months' time, which could be a result of stability in the national economy. Many analysts also expect the cash rate to remain low for a while longer yet, so there could be more good times to come for the construction sector.