Surge in new housing construction in Australia
The construction sector is also driven by renovations, which have reached an all-time high
In the wake of the Covid-19 pandemic, Australia’s housing market has grown exponentially, performing better than many leading Australian economists had expected.
According to CoreLogic, a leading Australian property data and analytics provider, dwelling values soared by 10.6% between May 2020 and May 2021 due to low interest rates, housing incentives and the desire for larger and healthier homes.
The Housing Industry Association has forecast over 143,700 new builds in 2021 and has estimated that renovations will hit all-time highs. In February, the Association predicted that 130,000 new detached homes would be built in 2021, a 20% increase from the 2018 record. Amongst the cities with the highest number of house building approvals are Perth (1,902) and Melbourne (2,662).