Which states have the best prospects for residential construction?

Posted by Design & Construct on 10-Dec-2015 03:21:50

New building approvals remained stable overall in October.

Residential construction activity has seen both positive and negative levels of activity in 2015. While some states have thrived in the housing sector, others have struggled to boost activity levels. 

For those looking for new opportunities in housing construction, are there particular areas to focus efforts on in the next few months?

Approval numbers show mixed yet stable results

According to the most recent data from the Australian Bureau of Statistics, dwelling approvals decreased by 0.6 per cent in October, highlighting another month of decline. However, the number of approvals was 5.5 per cent higher than the previous year, a small sign of positive growth in this area. 

Some states recorded a pleasing increase such as the Northern Territory (7.1 per cent), South Australia (4.4 per cent) and Victoria (1.6 per cent), while other areas struggled, including Western Australia (down 3.2 per cent) and New South Wales (down 2 per cent). 

Dwelling approval numbers vary across different states.
Dwelling approval numbers vary across different states.

Despite these results, the Housing Industry Association (HIA) remains positive about activity in this sector. Overall, total residential sales fell by just 3 per cent in October after hitting a historic peak earlier in the year. Housing sales are holding strong on the eastern seaboard, although states such as Victoria and Western Australia saw a fall in sales. 

However, HIA Chief Economist Dr Harley Dale stated that the outlook for sales is looking positive until the first half of 2016, which is good news for real estate recruitment

"New dwelling commencements have increased over three consecutive years to a record high," he said. "Leading indicators like new home sales and ABS building approvals suggest a fourth healthy year in 2015/16."

New construction plan to boost prospects in South Australia

Keeping up the momentum seen in October, the South Australian government has announced a new scheme that will give a huge boost to residential construction efforts. 

The initiative could create over 400 new jobs.

The 1000 Homes in 1000 Days program will replace older homes with new social housing and create new dwellings in areas such as Naracoorte, Goolwa and the Barossa Valley. The allocation of $208 million towards the initiative will be partially funded through the sale of land and old Housing Trust stock owned by the government. 

By Treasurer Tom Koutsantonis' estimates, the initiative could potentially create over 400 new construction jobs in 2016 alone, increasing to 500 within three years. 

If you need help finding the hot spots for construction around Australia, the experts at Design and Construct can connect you with the right people.