Population growth, housing, technology, and labour are some of the factors that have an enormous impact within the Australian Construction Industry, generating more than $350 billion in revenue, which represents 8% of Australia’s Gross Domestic Product. For the next five years, the industry projected an annual growth rate of 2.5%. As the sector covers a wide range of services, from planning and surveying to structural construction, there are critical statics that you must keep your eye on.
According to the latest industry report by the Australian Bureau of Statistic, the number of loans to owner-occupiers for the construction of new dwellings fell by 1.3% in June 2019. Buying a house may be the most expensive purchase for most Australians and April was impacted by the federal elections and the public holidays. In 2018, more than 20,000 new dwellings approved every month.
In the last two months, lenders have cut rates. Also, in June, mortgage lenders started to offer 40-year home loans for first-time buyers, which can be an incentive for younger buyers.
2. Cost of building
The average cost of building a new apartment in Australia increased by 53.0% over the past 15 years, rising from $211,999 in 2003 to $324,281 in 2018. According to with Australian Bureau of Statistics, Queensland recorded a 60.8% increase in average cost to build a new apartment.
3. Population growth
Australia's population grew by 1.6% during the last year. However, the statistics show that the population is expanding, the proportion of the people available to work is decreasing. Currently, there are 4.4 Australians of working age for every person over 65. By 2040, that ratio will be two-to-one. That has a significant effect on the workforce available, bank credits and type of construction to be built in the next decades.
According to the research published by Safe Work Australia, 31 workers killed each year in the construction industry, which 31% falls from a height and 15% hit by falling objects. In 2018, more than 12,00 serious compensation claims were issued, which represents 30% of the total.
The development of the construction industry is responsible for 14% of Australia’s total employment, according to the UDIA National. Most businesses in this industry are either sole traders or small, having less than 20 employees. Last year, employment in the construction industry reached nearly 1,118,000 and is projected to reach 1,300,000 by 2023.
Women in the construction industry: Women represent 1% of the top three trades of electricians, carpenters and plumbers and less than 3% when considering the all construction tradespeople in Australia.
Author - Gabriela Damaceno is a journalist and head of online content for Media Shark, a digital marketing agency located on the Gold Coast in Australia. She is representing HK Certifiers, qualified certifiers based in Blacktown.