Property market momentum is having a knock-on effect on the home building sector, according to the Australian Industry Group/Housing Industry Association Australian Performance of Construction Index.
Construction levels have risen to their highest point in nearly three and a half years, with growth in new orders driving expansion for the first time since early 2010.
This could end up being good news for the RBA, which is reportedly counting on construction to help take over from flagging resources investment. Off-the-plan apartment demand, for example, drove residential apartment construction activity into sub-index up 20 points to 57.7 points, its first increase since May, 2010 – a reading over 50 points indicates growth.
House-building figures have also improved, with a rise in new orders over the past four months being reflected in an increase in activity. The sector’s sub-index rose by 12.5 points to 61.5 in September, the first expansion in construction activity since February, 2013.