Australian Building and Construction Industry in 2021
Last year was a challenging year for everyone due to the pandemic. Although the construction industry was exempted from the lockdown restrictions and treated as an essential service, the construction work was still affected due to limitations like social distancing restrictions, labour availability on worksites, and supply chain disruptions. But there has been some good news for the construction industry in early 2021. Mid this year, we can start to look beyond the impact initially made due to COVID-19 on the construction industry.
Shortage of building material
Currently, timber is in shortage due to local geographic and economic events globally.
According to Independent forestry consultant Rudolf van Rensburg, Australian softwood prices had increased between 5 and 15 per cent. ABC News
“Australia faces a situation where there hasn’t been any significant expansion of the softwood plantations since the 1990s, so the supply from current plantations is fairly static, and demand is increasing with a rising population,” he said
Shortage of building materials, including timber, bricks, and windows, has led to expensive delays for renovations and new homes.
Housing Industry Australia chief economist Tim Reardon has told The Age a record 146,000 new detached homes were set to built this year, a 20 per cent increase on previous figures.
He said this boom was due to the government’s Home Builder Scheme—which provides $25,000 grants for new home builds or significant renovations, low-interest rates and a population shift to regional areas.
He expects demand for timber to level out within the next six months.
“Delivery times of four to 12 weeks are now fairly common,” he said. “Builders need to manage that scheduling better than they have in the past because of the constraints on materials.”
Growth in Residential Construction
In 2021 we have seen a boom in residential construction with 10% growth. This growth is due to the surge in demand for houses because of record-low interest rates, an improving outlook for growth in sustained employment, and programs provided by the government like HomeBuilder. Another factor is that people have been reassessing their priorities due to the lockdowns and saving the money they would otherwise spend on holidays.
If you’re looking to build your dream home, talk to our sales consultant to find out how we are dealing with the current situation and learn more about our building timeframes.