Latest HIA figures for the new house market show that despite lockdowns having a negative effect in July in Melbourne and Sydney the quarter is still 4.3% higher that the corresponding quarter back in the good times of 2018.
It appears that despite the end of HomeBuilder the demand for detached housing remains very robust. This seems to be influenced somewhat by a change in lifestyle and flexible working arrangements since covid that has resulted in a shift in mindset from apartments to the stand alone house as a sanctuary for the family and an alternative working environment. Coupled with this is the shift to regional areas where typically land is developed and opened up in shorter timeframes without the red tape and space constraints of the capital cities which is accelerating the growth in these areas.
The big handbrake and influencer in the construction space now, given the stronger than expected demand, is both the supply of products, especially imported products and the inflationary pressures on the costs due to this extra demand. The average building costs are rising at almost 2% per quarter and this isn’t likely to change until well into 2022 and similarly supply chain issues will remain for some time yet.
Combined with this is a shortage of skilled labour and with no labour coming in from offshore in the past eighteen months this is a challenge to the industry that also won’t go away overnight.
Despite these negatives most builders have never been busier and with a sustained outlook for growth in the foreseeable future, albeit with supply and labour challenges, the industry overall is in a good space heading into 2022 and beyond.
We at Imex are continuing to work with the industry to provide the best laser levelling equipment for maximum efficiency, productivity and accuracy and besides our range of legendary rotary lasers , there is a whole new line laser range for 2022 which will be available in stores during December, ready for your new year.