“Several interviewees expressed concerns about future demand once the current housing construction boom is over.”
Australia’s homebuilding pipeline is expected to stay full and spur economic growth even as the government’s HomeBuilder stimulus package rolls off the system, economists said this week, after approvals for new homes fell by 8.6% in April, in line with expectations. .
“The pace of job growth in the construction industry was the highest recorded since the Australian PCI began in 2005, which has fueled a further rise in reports of difficult to fill positions,” said Peter Burn , responsible for the policy of the Ai group.
“The heat in the market is also evident in the magnitude of accelerating input costs, wage increases and price increases.”
Activity in the four construction sectors tracked by the survey – housing, apartments, non-residential businesses and infrastructure – increased further last month, albeit at a slower pace of gain in the top three sectors. Engineering accelerated, this sector sub-index increasing by 1.7 points to 64.3.
Despite the April extension granted to HomeBuilder projects, allowing them an additional 12 months to begin construction, prices are being pushed up by demand for immediate starts and the disruption in the supply of materials and components, according to the report.
“Builders report demand is still supported by HomeBuilder, low interest rates, shifted consumer spending and a ‘local FOMO’ in popular locations,” the report said.
“Some respondents said slow loan approvals and the combination of high prices, late delivery and disruption are starting to make more customers wait. “