Increased Demand Seen for Tradespeople in Perth
Posted on March 3, 2015 by cassarigroup
Over the past year, demand for construction experts has increased dramatically especially in Western Australia’s new build home sector. We are now seeing an industry struggling to cope with a greater need for tradespeople such as bricklayers, joiners, roofers and other types of labourers. Those building a new home in Perth should be aware of changes occurring presently as well as in the future.
Effects of 2013 Property Trends
The current spike in demand has its roots back in 2012 and 2013 when Perth had one of the highest annual turnovers of vacant plots that it has ever seen. During this period, approximately 20,000 people purchased land which has, in turn, increased the number of houses being developed over the past year.
A Struggle to Cope
This drastic increase has created some problems in the building industry with supply almost unable to keep up with demand. A number of construction firms now have a full schedule over the next 12 to 18 months as they work hard to keep up with the wider range of vacant plots in line to be developed.
Fortunately, this need has been quelled somewhat by an influx of construction workers coming from resource projects in the Pilbara. With a decline in iron ore prices, there was a downturn in demand for contractors in these areas. Returning workers have helped Perth’s residential construction industry keep up with a larger number of land developments although there is still quite a backlog to go through.
An Uncertain Future
These current trends seem set to continue for a maximum of about 18 months. After that, the vacant plots purchased in 2012 and 2013 will be mostly developed, meaning the demand for tradespeople will then return to normal. Building firms have to be careful they don’t take on too many labourers now so they can later cope with the downturn in building projects without having too many staff.
The best construction firms will be able to balance these issues, hiring enough employees to cope with an increased development demand without having to worry about saturating the workforce in the future. Established firms will have dealt with these kinds of shifting patterns over the past few decades (with the 2013 land spike being the fifth largest in twenty years) and will have strategies set in place to handle the upcoming decrease in demand as well.
Advice for Home Buyers
These trends will certainly affect those interested in building their own properties. If you are holding onto a vacant plot of land and wish to develop your own house in the near future, it may be difficult to find a building firm who has the resources to assist you. Greater demand has meant that these companies may be booked out for a while. There is good news on the horizon though thanks to the forecasted decrease in demand due to occur in mid-2016. If you are patient, you should be able to design and build a new home during that period as Perth’s construction firms free up their hectic schedules.