Construction Boom Set to Continue Australia-Wide

Employment in the construction industry is going off as the plethora of 2014 approved medium and high density housing projects are coming to fruition in Melbourne, Sydney, Perth and Brisbane. In the September quarter of 2014, 50,000 units entered construction. That’s a 20% increase on the previous year! The best employment conditions appear to be in NSW and WA due to the home building boom of units and apartments.

According to Hays 2015 Quarterly Report, the most in demand construction jobs presently are:

Other skilled construction and related jobs also needed now:

The Housing Industry Association has identified skill shortages in residential building projects in Perth, Sydney, Brisbane and regional WA. These areas are in need of:

The current unemployment rate for the sector is approximately 3.67% with 86% of workers enjoying full-time employment.

Why So Much Growth?

In Queensland and most of the other states, government issued home buyer/builder grants are spearheading the growth by encouraging investment in commercial and residential land development. This has been confirmed by The Reserve Bank and the ABS.

“As a result, companies are gearing up for more construction activity this year, with the acquisition of commercial staff such as Project Managers and Commercial Contract Administrators on a permanent basis. There will also be a slight increase in demand for temporary staff on smaller residential projects that will begin early this year”, said Adam Shapley, Hays Construction Regional Director.

On a side note, one might speculate the keen interest of Chinese off-shore investors as another factor propelling along the construction boom. 2014 saw an all-time high of offshore investor spending in commercial projects. Between 2006 and 2014 the Chinese enjoyed a 400% total growth in Australian residential and commercial investment which is set to continue rising. For home buyers though, this is not such a good thing.

Since January 2007, Chinese investment coupled with many other economic factors has driven housing prices through the roof by 40%. The governor of The Reserve Bank, Glenn Stevens stated in the latest Financial Stability Review that first home buyers (though you can probably say most home buyers) have been "priced out of the market by investors".

So while this construction boom is great for those employed in the sector, it’s not all roses for home buyers.

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