Unit construction is set to plummet this financial year, however it will be replaced by a spike in the construction of new detached homes, according to new data Housing Industry of Australia.
The latest figures from the Australian Bureau of Statistics showed that more than half a billion dollars of construction work was completed throughout the ACT in the June quarter.
Construction has risen for three quarters in the territory, pushing the total value of construction work past $2 billion.
Almost $1.3 billion was for residential construction.
However, the Housing Industry of Australia’s National Outlook, also released on Wednesday, has predicted new dwelling commencements peaked in the 2015-16 financial year and the ACT is no exception.
While the HIA recorded a 27 per cent increase in ACT dwelling starts during 2015-16, they are expected to fall by 20 per per cent in 2017 and 3.6 per cent in 2017-18.
A -38 per cent dip in multi-unit starts has contributed to this overall figure. In contrast, house construction is expected to jump by 47 per cent.
HIA ACT executive director Greg Weller said a strong increase in detached home building was good news for Canberra as the construction of houses has a stronger economic benefit and flow-on effect than unit construction.
“There’s more opportunity for job creation and for manufacturers and suppliers of products that go into houses,” Mr Weller said.
“It’s also positive for apprentices in the industry as detached home building tends to be stronger for supporting those coming into the industry.”
Mr Weller said the HIA also expects a strong lift in the renovation market, which increased by 7.1 per cent last financial year.
“Historically low interest rates and steady house price growth are the key ingredients for the renovation market,” Mr Weller said.
Renovation activity is expected to grow by 3.1 per cent this year with a further 5 per cent uplift projected for 2017-18.