Beware the building boom

Australia is in the middle of a construction boom. Over the past six months, more than 100,000 new dwellings have been approved, taking the annual run rate to about 220,000 new dwellings. That’s the fastest pace of home construction in twenty years.Yet peer a little closer into the data and it’s clear that there are two distinct construction markets in Australia: high rise apartments and freestanding houses.Despite soaring property prices, detached housing construction has been flat or falling for a decade. Over the past two years that trend has reversed and detached housing construction is now slightly above the long...

Australia is in the middle of a construction boom. Over the past six months, more than 100,000 new dwellings have been approved, taking the annual run rate to about 220,000 new dwellings. That’s the fastest pace of home construction in twenty years.

Yet peer a little closer into the data and it’s clear that there are two distinct construction markets in Australia: high rise apartments and freestanding houses.

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