Australia’s construction industry sees signs of recovery

In Short:
– Australia’s construction sector is recovering from pandemic issues, but detached home building is at a decade low.
– To meet housing targets, 200,000 homes yearly require skilled trades, land supply, and reduced bureaucracy.

Australia’s residential construction sector is recovering from pandemic-related challenges, including price shocks and labour shortages.

However, ongoing pressures still affect construction timelines and costs. Ian Hazan, Nation President of HIA shares his insights with Dion Besser, founder of Besser+Co.

Future Requirements

To meet this target, an annual output of 200,000 homes is essential. This requires an adequate supply of land, skilled trades, and reduced bureaucratic obstacles. Various strategies, including temporary overseas labour access and tax reforms, might be necessary, as taxes currently account for a significant portion of construction costs. The government’s investments and incentives are beneficial but insufficient to fully resolve the supply challenges.