Nine-year high construction growth signals greater options for buyers
The scale of construction activity is usually a good indication of the kind of prospects homebuyers can expect in the future. If the construction sector is strong, you're likely to see an increased volume of housing stock injected into the property market, which can mean the potential for more affordable apartments for sale in Broadbeach. If the sector is not so strong, markets tend to stay tighter and more competitive.
Just as well, then, that the recent Australian Industry Group/Housing Industry Association (HIA) Australian Performance of Construction Index shows the sector is very much on the up. The index increased by 4.1 points over September to hit a total of 59.1 – the highest value it's hit in the nine years the survey has been checking the pulse of Australian construction.
This jump in the health of the industry was led by gains in the house building and apartment building sub-sectors, which hit values of 61.7 and 60.5, respectively. Commercial construction also played a role, jumping three points to 58.4.
"The latest Australian PCI is among a string of indicators signalling that the strong performance of the new residential construction sector should continue throughout 2014/15," HIA chief economist Harley Dale said in a 7 October media release.