Residential construction demand continues to decline
First time buyers may wish to consider building a home instead of purchasing one, due to recent figures from the Australian Performance of Construction Index (Australian PCI).
While housing affordability has generally increased throughout the country, the decline in residential construction has reduced prices in the building sector - begging the question, which option is better?
Australian PCI numbers analysed by the Housing Industry Association (HIA) reveal that the national construction industry contracted in February, marking the 21st consecutive month it has done so.
Australian Industry group director public policy Peter Burn reported declines in activity for each of the four sub-sectors and predicted similar results for the next few months.
He said: "With new orders also weak in February and with market interest rates now somewhat higher, the outlook for the next few months remains flat particularly for commercial and residential construction."
This revelation may encourage a choice to build residential property over buying, as construction services are more readily available and likely at a lower cost due to weak demand.