Residential building and renovation rebound triggered: ACIF

Jennifer DukeDecember 7, 2020

Record low rates are triggering a surge in demand for residential building and renovation due to homeowners and 'wannabes' now having access to cheaper cash, according to the Australian Construction Industry Forum (ACIF).

Noting that the industry will benefit from new greenfield development, increasing numbers of apartments and townhouses in many suburbs, and small scale improvements to existing homes, the ACIF said that New South Wales is leading this rebound, with Queensland the next predicted to move.

"The influence of international economics as well as domestic confidence and policy are strong across our industry,” said Peter Barda executive director, ACIF.

"The well worn patterns of past decades are no longer valid, and the emerging picture of the next ten years presented in this Forecast release are important information for businesses large and small," said Barda.

He noted that the Victorian market is seeing a 'down-cycling'.

Meanwhile, the non-residential building sector remains flat, however office buying and refurbishment is increasing below the surface.

Barda noted that the sector is highly vulnerable to change, as a result of the decreasing space per person in the capital cities.

The retail sector is said to be taking the chance to "remodel, extend and refresh" as fears of the effect of internet shopping affecting retail spending start to decline.

Jennifer Duke

Jennifer Duke was a property writer at Property Observer

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