Building confidence grows nationwide during March quarter
The latest release from the Master Builders Association (MBA) has highlighted the returning confidence of the construction industry across Australia. This could be great new for anyone interested in buying land and constructing their own residential property in the coming months.
The release of the Master Builders National Survey of Building and Construction has indicated a returning strength to business confidence - reaching the highest point in six years. As the industry continues to gear towards growth, the overall attitude towards residential construction and it's effect on the economy will be seen.
MBA Chief Economist Peter Jones said the results from the survey were encouraging, presenting evidence of the industry's recovery following a down turned period.
"Results for the March quarter show that we are beginning to see signs of the stronger confidence necessary to underpin a sustained recovery. We are seeing key indicators continue to strengthen while others have entered positive territory for the first time in years," said Mr Jones in an April 24 statement.
He said for the first time in three years, the proportion of builders who have been reporting higher sales jumped over 20 per cent, with more profitability also being reported across the nation's industry. As the strength of these markets grows, there will be spill-over effects into the real estate industry as well. With more first home buyers opting to build through the use of government grants, home ownership could be gearing up to increase.
"Builders confidence in the prospects for their own business rose for the third consecutive quarter. This is particularly reflective of the residential building sector's response to low rates and is an encouraging trend indicating industry's expectation that business activity will continue to rise over the next six months," said Mr Jones.
"New South Wales continues to be the stand out performer confirming recently released Australian Bureau of Statistics data showing an 18 per cent increase in dwelling starts for detached houses in calendar 2013. Victoria regained some of its previous strength and Western Australia continues to perform strongly notwithstanding the fading of intense resource investment that looms over the next few years."
The growing degree of construction across the nation is great news for those interested in buying land and building their dream residential property over the coming months. With interest rates remaining low, now could be the perfect time to pursue these real estate goals.