Prospects have brightened for residential construction, according to the Housing Industry Association (HIA).
To date, the recovery in new dwelling commencements has been driven largely by two states - New South Wales and Western Australia, but the outlook has improved for a broader-based comeback – though Victoria will prove a ‘drag’ on the national outcome in 2013/14.
The HIA says new dwelling commencements are forecast to hold largely steady at a little over 160,000 in the short term, before slowly recovering to around 170,000 by 2016/17.
Meeting the future housing requirements of Australia's population will require a minimum 180,000 new dwelling commencements per annum over coming decades, says the group.
“In late 2013, there is still uncertainty around the future trajectory of residential construction, but the 'vibe' is certainly improving,” reads a report published by the HIA. “This situation largely reflects new residential construction activity being at the fledgling stage of a recovery at a time when there are an unusually large number of variables influencing future demand and supply.”
“Heighted uncertainty notwithstanding, we have a brighter starting point for considering the new residential construction outlook than earlier in the year.”