Construction rates decease during December quarter
The level of construction work done in Australia has fallen slightly over the December 2013 quarter, which may have an effect on the supply of residential real estate on the market.
According to the Australian Bureau of Statistics, construction work fell by 1 per cent over the period. However, the volume of construction work done was up by 0.2 per cent from the same quarter in 2012.
Master Builders Australia (MBA) has responded to the drop in construction work over this period and said the key to successfully improving these results lies in restoring confidence in the industry and consumers.
Chief Economist of MBA Peter Jones said that all three sectors of the industry decreased during that quarter, which is expected to grow in the wake of the nation's deflating mining boom.
"Confidence is fundamental to the wellbeing of the building and construction industry and its capacity to contribute to economic growth and jobs," said Mr Jones in a February 26 statement.
"Master Builders Pre-Budget Submission focuses on the role the industry can play in strengthening the economy driving investment and jobs in the non-resources sectors of the economy and the importance of restoring business confidence by setting out a clear and credible strategy for return to sound economic management."
All aspects of construction recorded a drop over this period, with residential experiencing the largest decrease of 1.7 per cent. Following this, non-residential construction fell by 1.5 per cent, while engineering projects dropped by 0.5 per cent over the quarter.
A mixed outlook for building and construction has been given by the MBA, which has been influenced by a number of factors that could affect the overall development of the industry. One of the main points highlighted by the release was government intervention to ensure that supply and approval issues do no hinder the overall recovery of the residential building recovery.
"The lack of housing supply and its impact on housing affordability continues to be important but is largely missing from the public policy narrative," said Mr Jones. He implored state and local governments to improve their efficiency surrounding these issues in order to help further prepare the nation for the future.
With these developments, now could be a great time to consider buying land across the nation and attempt to build your own investment properties.