The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Urban Leader Awards Logos RGB White
NOMINATIONS CLOSING TONIGHT FINAL CHANCE TO GET RECOGNISED FOR YOUR WORK
NOMINATIONS CLOSING TONIGHT | URBAN LEADER AWARDS
NOMINATE NOWDETAILS
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
Exclusive

Precinct Proposals Bloom as Brisbane Middle-Ring Sheds its Past

Phil Bartsch
8 Min
Exclusive

Newest Land Lease Player Plots Sector Shake-Up

Taryn Paris
5 Min
Waterloo Affordable Mirvac hero
Exclusive

Affordable Housing Rules Tighten as Proposal Deluge Continues

Clare Burnett
5 Min
Exclusive

Beyond the Aerotropolis: How Airports are Turning into Cities

Taryn Paris
6 Min
Exclusive

Inside the Strategy Behind Australia’s Largest Direct Real Estate Deal

Phil Bartsch
5 Min
View All >
Infrastructure

Fast-Track Funding Clears Way for 13,000 Queensland Homes

Lindsay Saunders
Sterling Global 623 Collins Street tower rendering HERO
Development

Sterling Global Greenlit for Melbourne Heritage Highrise

Leon Della Bosca
Industrial

Melbourne Steps Out of Sydney Data Centre Shadow

Lindsay Saunders
The Victorian capital is undergoing a growth spurt in part thanks to its two biggest advantages over the Harbour City...
LATEST
Infrastructure

Fast-Track Funding Clears Way for 13,000 Queensland Homes

Lindsay Saunders
2 Min
Sterling Global 623 Collins Street tower rendering HERO
Development

Sterling Global Greenlit for Melbourne Heritage Highrise

Leon Della Bosca
4 Min
Industrial

Melbourne Steps Out of Sydney Data Centre Shadow

Lindsay Saunders
4 Min
Office

‘White Knight’ Cbus Property Takes 50pc Stake in Halo Tower

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