Building a new home is an exciting project, and it's important to time your construction appropriately. The right timing can help you save money and avoid some of the pitfalls that come with building in volatile markets.
If you're considering building a house in Western Australia, you might be wondering: is 2023 a good time to start construction?
In this blog post, we'll examine the state of the economy, industry trends, and other factors that can help you make an informed decision.
Economic Conditions in Australia in 2023
To determine whether 2023 is a good time to build a house in Australia, we first have to look at the prevailing economic conditions. Fortunately, most experts agree that the Australian economy is poised for healthy growth in the coming years.
Analysts predict that the GDP will increase by as much as 2% in 2023, fueled by strong demand for exports and high levels of government spending.
This is good news for builders, as a thriving economy means more jobs, more resources, and more homes needed to house the population.
Cost of building materials and labour
Another crucial factor to consider when timing your new home construction is the cost of building materials and labour.
The good news is that the cost of some materials such as timber may have slightly dropped after the demand increased due to the recent COVID-19 pandemic.
Labour costs are also on a more practical scale now than during the grant-fueled building bubble of 2021/22. This means that building a new home in 2023 may be more affordable than it would be during the last couple of years, which is excellent news for anyone on a tight budget.
Industry Trends in the Australian housing market
In addition to economic factors, industry trends are always worth keeping an eye on when it comes to planning your construction.
The Australian Property market has been, and remains, one of the top-performing property markets in the world. There has been an increase in house prices and rental prices which could indicate better cash flow if you plan on building to rent out your property.
Also, some changes in demand for homes due to peoples’ work lifestyle changes during the pandemic (working from home) could lead to an increase in the need for home office spaces, and another huge factor is the record low vacancy rates for rental properties.
If you'd like to know more about the Australian construction industry, you can read more about it here: Building a New Home in Australia - What's the Outlook for Construction in 2023?
Sustainability-conscious Materials and Building practices
Those looking to build a house in Australia in 2023 have another reason to feel positive. There is an ever-growing push for sustainable construction, meaning that creating a more environmentally friendly structure is becoming more popular by the day.
We have seen the Australian Government’s huge push for clean energy through solar panels, this would mean that many more builders might look to include eco-conscious practices in their new constructions.
Building practices which lead to sustainable homes that consume less energy and have lower carbon footprints are likely to gain more popularity, and builders might reap the benefits of such practices in the future.
The broader timeline for building a house
Finally, it's worth noting that the specific year you start construction is just one piece of a broader timeline. Depending on factors like the size and complexity of the house, obtaining permits, and weather considerations, building a new home usually takes 12 - 24 months.
That means that even if you start in 2023, you might not be able to move in until the end of 2024 or sometime afterwards.
Keeping these timelines in mind can help you plan your construction project accordingly and make the most out of your time and money.
So, what should you do?
Overall, we believe that 2023 could be an excellent time to build a new house in Western Australia.
When looking at the economy, industry trends, and practical timelines, the stars seem to be aligning for this year to be a good one for construction.
Of course, always seek professional advice before taking any financial steps towards your new construction project. Happy Building!
THE INFORMATION CONTAINED IN THIS ARTICLE IS INTENDED TO BE GENERAL IN NATURE AND IS NOT PERSONAL FINANCIAL ADVICE. IT DOES NOT TAKE INTO ACCOUNT YOUR OBJECTIVES, FINANCIAL SITUATION OR NEEDS. BEFORE ACTING ON ANY INFORMATION, YOU SHOULD CONSIDER THE APPROPRIATENESS OF THE INFORMATION PROVIDED TO YOUR OBJECTIVES, FINANCIAL SITUATION AND NEEDS.