How Apartment Construction May Be Saving Australia From A Recession
TPM Builders/blog/How Apartment Construction May Be Saving Australia From A Recession
Greece is in the depths of a recession, and many financial forecasters say North America and Europe will soon be in the grips of another financial crisis. Yet Australia hasn’t suffered a recession in 24 years. That makes it the only advanced country to escape financial hardship since 1991. Australia’s vast natural resources have played a part, but experts suggest the recent apartment construction boom has helped stave off a recent recession Down Under.
Construction commenced on more than local 50,000 apartments in 2014’s September quarter. That’s 20 percent more than the same time in 2013. This has helped lift the local market and minimised the impact of other economic factors.
Mining Sector Takes a Hit
Australia experienced disappointing gross domestic product (GDP) growth in the December quarter, caused chiefly by softening results in the mining sector. Further falls in mining investment are likely as projects conclude and few new ones commence. Income growth is also at a historical low, and the unemployment rate is rising.
Reserve Bank of Australia Endorses Apartments
According to the Reserve Bank of Australia (RBA), strong residential investment has helped offset the impact of local economic problems.
“The current strength of housing construction and the increase in housing prices were expected to provide a measure of support for consumption,” the RBA stated in March. “A range of indicators, including residential building approvals, suggested further strong growth of dwelling investment in the near term.”
The Australian Bureau of Statistics’ (ABS) December GDP research concurred with the RBA’s assessment. The ABS found the construction industry was one of the leading contributors to GDP growth.
TPM Builders is a leading Queensland commercial construction company with considerable experience in apartment design and construction. Contact us on 1300 733 891 to learn more about our apartment building expertise.
Image via Flickr by Nate Robert
START YOUR NEXT BUILDING PROJECT
Our design and construction processes ensure you remain in control of the entire project. We pride ourselves on adhering to the highest of standards and work alongside you, every step of the journey.
Long term relationships built on trust and transparency.
Design and Construct
Our team designs, builds and completes quality commercial building projects.