Forest of cranes showing Australian housing market is sky high
The Australian population is rapidly growing, so it is no surprise that more housing must be built to accommodate them. With an increasing number of cranes emerging in the skylines of numerous Australian cities, it appears that this is exactly what’s happening.
Not only is the booming rates of residential construction likely to have an impact of the economy, but also to create more jobs in the construction industry, meaning this is welcome news for jobseekers around the country.
There are a total of 647 cranes current working in construction sites around Australia.
Large jump in the number of cranes in Australian cities
Property and construction company Rider Levett Bucknall (RLB) has recently released its Crane Index for the second quarter of 2016, revealing that March saw 114 new cranes rising in cities all over Australia, which is a 20 per cent increase from the number recorded in late 2015. There are currently a total of 647 cranes working in construction sites, with around two thirds of them operating in Sydney. There are also a number working in Melbourne and Brisbane.
Stephen Ballesty, Director of Research and Development at RLB, told the Australian Financial Review that high-rise residential buildings make up a significant portion of the projects that cranes are working on.
“We are disproportionately weighted towards the high-rise residential… so the market gravitates towards it without necessarily thinking what’s next,” he said.
He adds that despite the drop in residential construction that many experts have been predicting, crane activity actually shows that the market is still going strong.
“I take heart from the churn rate that the cranes are not only out there, but they’re required to move from site to site within a six-month cycle.”
So what is the state of residential housing?
It’s apparent that despite the naysayers expecting a slow down, residential construction is still flourishing in Australia.
According to figures by the Australian Bureau of Statistics for the December quarter of 2015, nearly 56,000 dwelling projects were begun during that period, with the total value of residential work rising by 1.3 per cent.
Interestingly, the statistics support the views of Mr Ballesty, showing that while there was a 2 per cent decrease in the value of housing work, other residential building saw an increase of 5.5 per cent.
In general, the positive outlook may mean a lot more opportunity for workers in the construction industry. It may also result in more employment for tradespeople, demonstrating that new projects create a range of different short-term and long-term benefits for recruitment and the wider economy.