Australia is in the midst of an apartment construction boom. Discover more about the recent rise of new apartment buildings and what they mean for Australia’s construction industry.
How Has Apartment Construction Grown?
Apartment building in Australia is accelerating at the most significant rate since the Australian Industry Group and Housing Industry Association implemented its index 10 years ago. Thirty percent more Australian units, townhouses, and apartments received construction approval
in the first half of 2015 than in all 12 months of 2009.
What Does the Future Hold for Apartment Construction?
Opinions vary on how long the boom will last, but apartment construction is expected to stay strong for a few years yet. The Australian Construction Industry Forum believes the value of nondetached housing construction will rise by 8.7 percent. This would take this construction segment to $20.674 billion, almost twice its worth five years ago. Experts suggest apartment construction will retain this value until the 2018/2019 financial year.
How Will the Boom Affect Australia’s Construction Industry?
New apartment projects have helped Australia’s construction activity grow steadily in recent months. The Performance of Construction Index climbed 0.2 points to 52.1 in October, the third jump in as many months. Levels above 50 points show the construction industry is expanding, rather than contracting.
The strength of apartment building has helped offset a decrease in the construction of standalone residential dwellings and engineering building projects, according to Peter Burn, the head of public policy at the Australian Industry Group and Housing Industry Association.
“(More) growth in the months ahead
will be encouraged by the higher levels of new orders recorded for the apartment, engineering, and commercial construction subsectors,” he told Sky News. “This is a further sign of the long-awaited broadening of the base of economic growth.”
As part of the commercial construction industry, TPM Builders
is excited to be involved in this economic growth. Call us at 1300 733 891 to discuss all of your commercial construction needs.
On the back of the recent apartment boom, Australia’s construction industry is going from strength to strength.
©Image via Flickr