Rider Levett Bucknall RLB’s Post

Australia's residential sector currently faces multiple headwinds – key among them are unviable projects that don't stack up financially, dwindling confidence among builders, and an acute shortage of labour which has kept construction costs high. As we look to the future, it is clear that a comprehensive approach to residential development in Australia is necessary — one that acknowledges the cyclical nature of the market and prioritizes innovative thinking and sustainable development practices. Read my latest article here: https://lnkd.in/gxDAe3kP #AustraliaCRE #AustraliaHousingAffordability #AustraliaResidentialDevelopment

High-quality affordable housing will soon be delivered faster across metropolitan Adelaide thanks to a new initiative simplifying the construction tendering process for government-led residential projects. Starting this month, at least 10 construction companies will join a pre-approved list of builders for government developments. This new Builders Panel allows Renewal SA to select the right builder for the right job without lengthy tenders, reducing the time to market by several months. Efficiencies will be improved by reducing the number of tenderers per project, reducing administration, standardising agreements and addressing the housing emergency by speeding up project completion. The first homes procured using this panel will be 25 affordable rental homes at Playford Alive. Peter Gatsios, Acting Executive Director Residential Project Delivery and Assets at Renewal SA, said the panel will be mandatory for all builders working on Renewal SA residential engagements in the metro region, from Gawler to Aldinga. “We want to make working with the government easier for builders and improve the speed to market and supply of housing,” he said. Learn more about how we’re making it easier for South Australia’s builders to get new homes out of the ground: https://lnkd.in/gKxGVeuQ

🏠 Building Challenges: The State of Australia's Housing Market Australia’s construction industry has faced significant challenges in recent years, from delays and cost increases to shifting housing trends. 📌 Construction Delays and Backlogs: A surge in house commencements during 2021 led to construction bottlenecks due to material shortages, labour constraints, and extreme weather. The backlog peaked in early 2023 and has since eased, with houses under construction reducing, according to latest data from Australian Bureau of Statistics. 📌 Rising Costs and Completion Times: The average cost to build a new home rose 6.7% annually over the past five years, reaching $443k in 2023-24. Completion times have increased by 50%, with Western Australia experiencing the longest delays at 16 months on average. 📌 Shifts in Housing Trends: The pandemic boosted new house approvals, with 66.7% of all dwellings in 2020-21 being houses. However, approvals for apartments declined sharply, reaching their lowest level since 2008-09, reflecting challenges in high-density construction. #HousingMarket #ConstructionDelays #PropertyTrends

South Australia leads in residential construction, showing remarkable growth and development. Recent data highlights government initiatives, including releasing historic amounts of residential land and abolishing stamp duty for first home builders. Treasurer Stephen Mullighan notes the positive impact on the economy, with a 7.5% growth in the December 2023 quarter, reaching $1.1 billion. The state excels in new house constructions, with a 12.9% jump, and boasts a diverse housing market. The thriving construction sector propels economic resilience, reflected in the state's top national ranking and low unemployment rate at 4.0%. If you’re interested in finding out more, click here > https://lnkd.in/gyyWuYmu

The latest figures from the Bureau of Statistics show approvals for total dwellings fell in New South Wales by 18.8 per cent in the 12 months to June 2024. It is the lowest level of housing approvals seen in nearly 12 years.

Why Homebuilding in Australia is Lagging Behind 🏗️ Australia's residential construction industry is facing some tough hurdles, with high costs and low productivity limiting new builds. According to the latest Cordell Construction Cost Index, costs rose by 1.0% in the September quarter—up from 0.5% in June, but still a far cry from the 4.7% peak in 2022 📈. CoreLogic’s Eliza Owen points out that these persistent costs, without a productivity boost, are making projects less feasible, resulting in lower approvals. “The particularly low levels of apartment development will also mean a higher ratio of demolitions to dwellings completed, and lower net completions than in the 2010s,” she explains. There are some positive signs, with capacity easing in early stages of detached housing. However, as Eliza highlights, more must be done to improve the sector’s productivity. Without it, Australia's housing supply will continue to struggle. #AustralianProperty #HomeBuilding #ConstructionIndustry

🏠 Housing Update: What It Means for Builders in Australia 🛠️ Australia is making strides in homebuilding, with an increase in dwelling approvals—a positive signal for the construction industry. In July, detached house approvals rose by 0.6%, and total dwelling approvals jumped by 10.4% month-on-month. While this boost is welcomed, there’s still a significant gap to bridge in meeting housing demands. Despite this progress, approvals remain 5.1% below the five-year average. As Housing Industry Association economist Maurice Tapang pointed out, stabilising interest rates and material costs are helping restore confidence in the market. For builders, this means two key things: - Increased Opportunities: With rising approvals, there’s more work on the horizon, but more approvals are still needed to meet long-term demand. - Stabilising Costs: Material prices and build times are returning to pre-pandemic levels, giving more certainty for planning and pricing projects. With demand high and supply still low, the market is primed for growth, making it an important time for builders to prepare for the next wave of projects. #ConstructionUpdates #HousingMarket #AustraliaConstruction #SydneyConstruction #LuxuryHomes

Check out our latest Insight on Australia's Multi-Unit Housing Trends! #housingmarket #propertytrends #economicoutlook2024 #industryinsights https://lnkd.in/grNCmBXm

Great article by CPA Canada discussing the proposed housing plan to address the current shortfall. The last graph in particular showing construction duration will continue to get worse with respect to multi-family units. New building codes coupled with increased regulation makes it difficult to get new housing up quickly, as well as increasing already high building costs. CMHC has done well to allow 50-year amortizations for their Select program, provided certain metrics are hit. In Winnipeg, we still see permits taking excessively long. Shortening permit wait times, alongside reducing red tape in many areas would promote development quickly.

Housing construction starts in Australia came in at record lows in 2023/24. But there are some better signs on the horizon as conditions are expected to improve in coming years. #construction #housing #property #realestate https://lnkd.in/g5d4aaRC