Plumbing Supply Forum Insights1 July 2014
A Snapshot of the Housing Industry 2014/15 and Beyond with Housing Industry of Australia Chief Economist, Dr Harley Dale
Last month we were lucky enough to attend the Plumbing Supply Forum in Sydney where we heard from a number of leading industry figures including Parliamentary Secretary the Hon. Josh Frydenberg, who presented on a range of topics centred on this year’s theme of Building a Sustainable Future for the Plumbing Sector
In the coming months we’re going to revisit several of the key topics that were covered to provide you with an overview of what’s in store for the industry over the next couple of years. This month we’re taking a look at what Housing Industry of Australia (HIA) Chief Economist, Dr Harley Dale had to say in relation to current trends and future predictions for the residential building and renovation markets in Australia.
With the mining boom cooling off, the housing industry now holds the key to the economy according to Harley Dale. This brings some welcome news for the plumbing industry, with new home builds forecast to reach their second highest level on record in 2014. The HIA is predicting an amazing 180,000 new homes to be built this year – levels Australia hasn’t seen since 1994 when there were 187,000 new builds.
What we’re building is also looking much different these days, with multi-dwelling builds on the rise meaning plumbing services will be highly sought after in this sector. As the humble detached house accounted for 53% of new builds in 2013 (compared with 73% in 1993), apartments and semi-detached town houses accounted for almost half of new builds (40%), a trend that is showing little sign of slowing.
Renovations are currently at a ten-year low with Victoria the only state really seeing a steady increase in this area. However with new dwelling commencements forecast to increase by 7.1% in 2014, along with rising house prices, we’re likely to see more renovation activity on the horizon.
While the demand for housing remains urgent across many parts of the country, Dr Dale stressed that supply of skilled workers will be one of the biggest challenges facing the sector. This will likely impact industry growth it’s also a strong indication that there may be plumb times ahead on the job front.
Head to http://www.plumbingsupplyforum.com.au to view Dr Harley Dale’s full presentation.
In other news from the HIA, the National Construction Code will be free from 2015. Click here to read more.