The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
JOIN US FOR A ONE-DAY DEEP DIVE INTO THE FUTURE OF THE INDUSTRIAL SECTOR
FIND OUT HOW THE INDUSTRIAL MARKET IS CHANGING IN 2026
LEARN MOREDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
25
print
Print
ResidentialRenee McKeownWed 20 May 20

Drop in New Builds Puts 500,000 Jobs at Risk

7a00ae04-870c-45e0-8dc5-ef7f5cbca246

Around 500,000 construction jobs will be at risk as experts predict a massive drop in demand for new home builds after Covid-19.

The Housing Industry Association anticipates the shock would take force in September and reverberate down the supply chain as dwelling commencements fall from 200,000 to 112,000 next year.

Construction jobs during the pandemic have already dropped by 5.6 percent according to the latest Australian Bureau of Statistics report.

The predicted 60 year low⁠—closing in on 100,000 new builds—was a figure cited by UBS who said this combined with a fall in house prices posed a macro-stability risk.

ASX-listed Stockland and private residential developer Satterley Property Group have also already reported changes in residential demand during Covid-19.

Related: Stimulus Not Enough to Offset House Price Falls


Australian dwelling commencements post Covid-19

^Source: ABS/HIA

HIA managing director Graham Wolfe said the disruption to migration and the elevated rate of unemployment would weigh heavily on demand for residential buildings beyond 2020.

“In financial year terms, dwelling starts in 2019/20 are now expected to be down by 18.3 per cent compared with 2018/19, and starts are forecast to decline by a further 30.5 per cent in 2020/21,” Wolfe said.

“If this transpires, the commencement of new homes will have fallen nearly 43 per cent from last year, to next.”

Wolfe said the building industry was fortunate to continue operating and job keeper had played a very important role however the worst was yet to come.

“Many small builders will not be eligible for the program as the downturn will impact the sector most significantly from September 2020 when the majority of projects under construction are completed,” Wolfe said.

The drop in migration and student arrivals would also have an impact on the construction industry.

“The loss of the international students and migration creates a temporary imbalance in demand for rental accommodation,” Wolfe said.

“The 625,000 overseas students enrolled in Australian education institutions equates to demand for the past two years of apartment construction.

“It is not clear how many of these left in March or how many will return.”

ResidentialAustraliaConstructionPlanningPlanningSector
AUTHOR
Renee McKeown
More articles by this author
ADVERTISEMENT
TOP STORIES
Multiplex Moderna facility
Exclusive

Industrial Subsectors Win Investor Attention as Demand Blossoms

Clare Burnett
7 Min
Bee Bricks hero
Exclusive

Beyond Green: The Rise of Net-Positive Architecture in Australia

Clare Burnett
7 Min
Exclusive

Central Element Hotel Debut Spearheads Oxford Street Renewal

Taryn Paris
8 Min
London skyline near the walkie talkie tower showing the 85 gracechurch street development.
Exclusive

Basilica to Business: London Office Tower’s Historic Rework

Renee McKeown
6 Min
Hotel Indigo Adelaide hero
Exclusive

Neighbourhood Hotels Reinvent Urban Hospitality

Clare Burnett
5 Min
View All >
The six warehouses are accessible from both Parramatta and the new Western Sydney International Airport.
Industrial

Frasers Moves Ahead with $345m Scheme West of Sydney

Patrick Lau
Fortis tops out 122 Moray Street commercial project HERO
Office

Fortis Tops Out $50m South Melbourne Office Scheme

Leon Della Bosca
Affordable Townsville hero
Affordable & Social Housing

Greenfield 258-Unit Affordable Plans Launched for Townsville

Clare Burnett
The latest project in north Queensland seeks to plug the gap for the thousands in need of affordable homes…
LATEST
The six warehouses are accessible from both Parramatta and the new Western Sydney International Airport.
Industrial

Frasers Moves Ahead with $345m Scheme West of Sydney

Patrick Lau
2 Min
Fortis tops out 122 Moray Street commercial project HERO
Office

Fortis Tops Out $50m South Melbourne Office Scheme

Leon Della Bosca
2 Min
Affordable Townsville hero
Affordable & Social Housing

Greenfield 258-Unit Affordable Plans Launched for Townsville

Clare Burnett
2 Min
With new office space becoming unfeasible, Deicorp is pivoting to mixed hotel-residential mid-construction.
Office

Deicorp Plots Offices-to-Hotel Crows Nest Tower Switch

Patrick Lau
5 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/drop-in-new-builds-puts-500k-jobs-at-risk