HOUSE CONSTRUCTION – AUSTRALIA

Build times go through the roof

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Original article by Jessica Wang
The Australian – Page: 7 : 2-Jul-25

Analysis by the Institute of Public Affairs shows that it took an average of 12.7 months to build a new home in 2024, from initial approval to completion. This compares with an average of 8.5 months in 2014. The IPA’s analysis of building activity data from the Australian Bureau of Statistics also shows that the cost of building materials has increased by 53 per cent over this period. The IPA’s research director Morgan Begg says all levels of government must take action to address the housing crisis; amongst other things, he has called for a reduction in the migrant intake, less red tape and the release of more land for housing development.

CORPORATES
INSTITUTE OF PUBLIC AFFAIRS LIMITED, AUSTRALIAN BUREAU OF STATISTICS

Home building falls as election stokes demand

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Original article by Michael Bleby
The Australian Financial Review – Page: 37 : 17-Apr-25

Data from the Australian Bureau of Statistics shows that new housing starts nationwide totalled 168,049 in calendar 2024, which is 1.8 per cent higher than previously. However, new home starts fell by 4.4 per cent to 41,911 in the final three months of the year, which was the largest quarterly decline since September 2023. Both major political parties recently announced election policies that are expected to boost demand for housing, but Paul Bloxham from HSBC says the focus should be on measures to boost housing supply.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, HSBC AUSTRALIA HOLDINGS PTY LTD

Australia does not have enough tradies to fulfill Labor’s housing promise, experts say

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Original article by Luca Ittimani
The Guardian Australia – Page: Online : 15-Apr-25

About 170,000 new homes are currently built nationwide every year, but Labor aims to lift this to 250,000 annually for the next four years it wins the federal election on 3 May. However, the Housing Industry Association’s chief economist Tim Reardon contends that labour constraints within the construction industry means that the nation currently has the capacity to build 200,000 to 220,000 new homes each year. The HIA estimates that an additional 80,000 tradespeople are required nationwide. Reardon notes that many ‘tradies’ are opting to move to industries such as mining, while many school leavers are rejecting a career in the construction sector.

CORPORATES
HOUSING INDUSTRY ASSOCIATION LIMITED, AUSTRALIAN LABOR PARTY

Approved housing for 100,000 stalls on rising costs

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Original article by Larry Schlesinger
The Australian Financial Review – Page: 27 & 28 : 29-May-24

KPMG’s analysis of data from the Australian Bureau of Statistics shows that at the end of 2023, construction had yet to begin on more than 37,000 dwelling had been approved. This represents a nine per cent increase on the five-year average. These dwellings would provide housing for nearly 100,000 people, based on the nation’s average household size of 2.5 people. Townhouses and apartments comprise nearly two-thirds of dwellings that are awaiting construction. KPMG’s urban economist Terry Rawnsley says factors such as rising construction costs and labour shortages have contributed to the stalled housing commencements.

CORPORATES
KPMG AUSTRALIA PTY LTD, AUSTRALIAN BUREAU OF STATISTICS

New home supply to hit decade low

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Original article by Larry Schlesinger, Michael Read
The Australian Financial Review – Page: 1 & 32 : 19-Mar-24

The Urban Development Institute of Australia has forecast that just 79,000 new home builds will be completed nationwide in 2026. This is 26 per cent lower than in 2023, and the slump in new housing supply is set to further reduce the affordability of homes and rental properties. The dire forecast also casts further doubt on the federal government’s target of building an additional 1.2 million homes over five years. Barrenjoey’s chief economist Jo Masters says this target is ‘aspirational’, and will require high rates of apartment construction; she adds that apartments have a longer construction and lead time than houses.

CORPORATES
URBAN DEVELOPMENT INSTITUTE OF AUSTRALIA, BARRENJOEY CAPITAL PARTNERS PTY LTD

New house pipeline at near-12 year low

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Original article by Michael Bleby
The Australian Financial Review – Page: 31 : 5-Mar-24

Data from the Australian Bureau of Statistics shows that approvals for new detached homes fell by 9.6 per cent month-on-month in January, to the lowest level since mid-2012. Approvals for apartments, townhouses and semi-detached homes fell by 22 per cent. Tamawood CEO Robert Lynch says the house construction market has most likely reached its bottom; however, he cautions that factors such as high interest rates mean that a rebound may take some time. He adds that sales activity in the more affordable segment of the housing market – in which Tamawood specialises – is likely to recover first.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, TAMAWOOD LIMITED – ASX TWD

Fall in detached housing approvals puts Labor’s 1.2 million target at risk: economists

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Original article by Olivia Ireland
The Age – Page: Online : 10-Jan-24

Data from the Australian Bureau of Statistics shows that dwelling approvals rose by 1.6 per cent to 14,529 in November. However, building approvals for detached houses fell 1.7 per cent month-on-month, to 8,506. The Housing Industry Association’s chief economist Tim Reardon expects approvals for detached homes to keep falling during the first half of 2024; he adds that this will make it hard to achieve the federal government’s revised target of building 1.2 million new homes over five years. This equates to 240,000 per year, but Master Builders Australia expects about 170,000 new home to be built in 2023-24.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, HOUSING INDUSTRY ASSOCIATION LIMITED, MASTER BUILDERS AUSTRALIA INCORPORATED

Big projects putting home target at risk

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Original article by Michael Bleby
The Australian Financial Review – Page: 25 : 9-Nov-23

Property developers and builders have warned that the pipeline of publicly-funded infrastructure projects will make it hard to achieve the federal government’s revised target of 1.2 million new homes by 2029. This target is already uncertain, given that the number of housing starts fell to just 40,720 in the June quarter, which is its lowest level in a decade. Master Builders ACT CEO Michael Hopkins notes that the house construction sector is competing with infrastructure projects for the limited supply of labour. He adds that the construction sector will require an additional 500,000 workers nationwide by November 2026, including 7,000 in the ACT.

CORPORATES
MASTER BUILDERS’ CONSTRUCTION AND HOUSING ASSOCIATION OF THE AUSTRALIAN CAPITAL TERRITORY

Slowdown in home building costs to help ease inflation

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Original article by Nila Sweeney
The Australian Financial Review – Page: Online : 12-Oct-23

CoreLogic’s Cordell Construction Cost Index for the September quarter shows that there was just 0.5 per cent growth in construction costs, making it the lowest since 2015. CoreLogic research director Tim Lawless says that growth in construction costs could ease further in coming months, which could lead to lower inflation; he notes that housing has the biggest weighting in inflation measurement and the cost of new residential owner occupied homes is the largest component of the housing segment.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD

HOUSE CONSTRUCTION – ECONOMIC ASPECTS – AUSTRALIA,[SPACE]INFLATION (FINANCE) – AUSTRALIA]

Developers scoff at 1.2m homes target

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Original article by Michael Bleby
The Australian Financial Review – Page: 1 & 8 : 13-Sep-23

Housing Minister Julie Collins has told a property summit that the federal government’s target of building 1.2 million new homes in five years is "ambitious but achievable". However, Western Australian property developer Nigel Satterley says that at best about 600,000 to 650,000 dwellings are likely to be completed within this time-frame, citing a labour supply shortage. Melbourne-based developer Tim Gurner agrees that the target will be difficult to achieve, noting that high costs and poor planning laws are also a challenge for the sector.

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