A survey conducted by Master Builders Australia reveals that construction activity is set for a strong start to 2017, with residential construction in particular in positive territory.
“Master Builders National Survey of Building and Construction shows that the positive outlook at the national level reflects the strong pipeline of work in the housing sector,” Master Builders Australia national housing manager Matthew Pollock says.
“[This reflects] the record building approvals and housing loans approved in 2016 and over 70 per cent of survey respondents indicating their books are full for at least the next six months,” he says.
Master Builders Australia claims the improved outlook for the sector is a result of the easing of government restrictions and the return of the Australian Building and Construction Commission (ABCC), and says the government needs to do more to help the construction industry.
“Business confidence is also at its highest level in over two years and reflects a growing sense of optimism in the non-residential construction sector, particularly since the return of the ABCC,” Pollock says.
“But commercial builders are looking for business-friendly policies from Government, such as a company tax cut and a credible structural Budget repair strategy to boost prospects in the sector.”
The industry group says the positive view from business flies in the face of recent negative reports concerning the state of the industry.
“The results stand in contrast to some of the gloomier outlooks currently circulating for the industry, particularly housing,” Pollock says.
“While some commentators are saying the housing market is about to hit a wall, sentiment from Master Builders members shows that activity in the home building sector will be strong at least for the first six months.
“[This year] should usher in the peak of the current housing cycle, with activity projected to peak at $66.7 billion,” Pollock adds.
“The wind down in activity, set to commence in the latter half of 2017, is likely to be a slow decline rather than a sharp fall because of low interest rates and relatively strong demand remaining.”