As Australia’s population reaches the 25-million mark, property developers will need more construction supplies to meet the country’s growing demand for housing,
The increased need for building materials, from steel sheets to concrete retarder products from suppliers like Timberfix, occurs as permits rebounded in June when approvals rose 1.6% year over year. Building permits don’t necessarily translate into actual projects, but those serve as an indicator of future activity within the real estate sector.
Queensland, Tasmania and Western Australia recorded the biggest increase in building approvals in June. These markets likely accounted for most of the estimated 8,900 new apartment permits and 10,100 new standalone houses. Developers in these regions are likely to see stronger demand for housing, especially among first-time buyers.
On the contrary, the value commercial building permits dropped by 7%, while home renovation values also decreased by 10% for the month. This trend indicated that the residential construction sector was the safe haven among contractors, driven by low interest rates and a growing population.
The Australian Bureau of Statistics’ data showed that more than 24.7 million people were living in the country in 2017. New South Wales accounted for the majority with more than 7.9 million, followed by Queensland with around 6.4 million.
Experts believe that a bigger population can be a double-edged sword. Some disadvantages could be in the form of depleted resources and fewer available lots for housing. On the other hand, the country’s economy needs more workers to support the growth of several industries, including the real estate sector.
Whether building approvals reach the construction stage, property developers should consider how to save money on materials and on-site supplies. Choose a supplier who can provide fast deliveries and on-time shipping since delays affect the overall construction timeline.