Massive Shortage in Housing Construction Continues
As Australia continues to work through a huge volume of new home…
18 May 2022
The March quarter Property Industry Confidence Survey measured the sentiment across residential and commercial real estate, regarding prospects over the next 12 months.
The number indicates the equal fourth-highest level of confidence since the survey began in 2011.
“Confidence is being driven by strong economic momentum along with a large pipeline of work,” says ANZ Senior Economist Felicity Emmett. This follows the outlook of the Commonwealth Government and Economists.
Projects in residential construction and civil infrastructure, as well as the easing of restrictions following high vaccination rates for Covid-19, mean positivity and the space for economic growth.
Additional housing demand is expected with international arrivals amid reopened borders, pushing an extra line of projects into the pipeline.
Low unemployment rates also mean mortgage commitments and residential confidence when it comes to repayments.
Emmett expects a shift in focus later this year and into 2023 and 2024, away from detached house construction and toward multi-unit developments. This will aid in the stress on homebuilders and increase overall civil construction confidence as well.