Residential Industry set to Spike in 2020

Home building is expected to pick up in the second half of 2020 following a decline last year due to banks tightened their lending standards last year.

The housing sector could finally be at the end of a downturn with home buyers likely to enjoy favourable buying conditions throughout 2020, according to industry bodies.

The ANZ/ Property Council of Australia March 2020 survey showed construction is expected to be positive over the next 12 months. The expected 14.6 point increase is the highest quarterly gain since December 2013.

The fact that residential construction is looking positive will in turn positively effect other industries and the economy as a whole.

Good news for investors as figures from Domain has showed that rents have stopped falling in every city but Sydney.

Housing construction was one of a number of measures contributing to a boost that lifted the latest quarterly index of sentiment to 123, up five points from the previous survey and above the 2019 average of 121 points.

The commercial property industry has also seen an increase due to the industrial property sector performing well.

Overall, the survey which included 953 industry professionals between mid- November and early December showed that the majority believe residential construction conditions are expected to be better over the coming months.