By Michael Lavorato
Trying to predict new residential housing activity over the next six to 12 months is not an easy task given the current volatility of business sentiment as the country navigates a path to recovery from COVID-19.
The nature of the construction industry which can see contractors booked, locked-in and working on projects months into the future, has meant that when the job shedding began in March and into April, the sector was insulated from the downturn experienced more broadly across the economy.
On the flipside though, once we get to the fourth quarter of this year and current projects are winding-up, building activity could suffer. For those with secure employment who had been planning to build or renovate a property, this could be the ideal timing to get the build underway with builders having the capacity to handle the new work.
The prospect of building or renovating was made even more attractive recently, with the Federal Government announcing a $25,000 building grant for eligible owner-occupiers including first home buyers. Some restrictions apply, so interested readers should visit the Treasury website for full details: https://treasury.gov.au/coronavirus/homebuilder
As well as being attractive for owner-occupiers, the initiative is good for tradespeople in that it might encourage prospective renovators or new builders to get off the fence and commit to a project. Suppliers to the industry will also benefits with continued demand for their products including materials, tools, consultancy services and others.
At TM Linings we are confident that the worst of COVD-19 is now behind us and that the residential building activity will show steady progress in the next 6 to 12 months.
Michael is the Director of TM Linings – now the largest plasterboard specialist in NSW servicing greater Sydney, the Hunter Valley, the South Coast, Southern Highlands and the ACT. The company is recognised as the largest third party customer of CSR Gyprock, USG Boral and Knauf Australia, the three major industry suppliers.
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