The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
AFFORDABLE HOUSING DEVELOPMENT SUMMIT THIS THURSDAY
AFFORDABLE HOUSING SUMMIT THIS THURSDAY
EVENT DETAILSDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
15
print
Print
ResidentialAna NarvaezTue 08 Oct 19

Apartment Construction Declines for 18th Straight Month

1390cfd2-704e-4810-b22f-44cc7ff36275

The downturn is still weighing on the apartment sector, with construction work on new apartments contracting at an even faster rate last month.

The performance of construction index, published monthly by the Ai Group and HIA, revealed that the construction industry had pulled back for the 13th consecutive month in September, registering a seasonally-adjusted 42.6 points.

An index reading below 50 represents a decline in activity, while a reading above indicates growth.

The weak-performing apartment sub-sector has experienced declining activity over 24 of the past 26 months. Apartment construction contracted at a slightly steeper rate in September than in August—the sector’s 18th consecutive decline.

Despite the low interest rate environment and evidence of a boost in market confidence over recent months, apartment building numbers remain at historic lows.

“We will need to see that improved confidence translate to greater numbers of active market participants in order to halt the contraction in residential building,” HIA economist Tom Devitt said.

The four construction sub-sectors reviewed by the performance of construction index—house building, apartment building, engineering and commercial activity—all remain firmly in “contraction” territory, with sub-50 readings.

Related: Apartment Construction Downturn Has 12pc Further to Run

Index this monthChange from last month12-month average
Apartments33-0.932.7
House building46.22.338.9
Engineering39.3-3.047.7
Commercial46.70.045.5
Australian PCI42.20.243.2

^Australian performance of construction index, September.

There were some green shoots in home building, which slowed in its rate of decline over September.

“Both the activity and new orders indexes in house building recorded increases in September, suggesting the pace of decline in this part of the industry at least has eased noticeably over recent months,” Ai Group head of policy Peter Burn said.

Outside of residential building, commercial construction declined for a 14th consecutive month amid subdued demand for commercial building projects.

“In view of these generally weak conditions, the case for an acceleration in infrastructure spending is clearly strengthening,” Burn said.

ResidentialAustraliaConstructionArchitectureReal EstateConstructionSector
AUTHOR
Ana Narvaez
The Urban Developer - Editorial Director
More articles by this author
ADVERTISEMENT
TOP STORIES
Fortis’ display suites are designed as brand environments first, with tactile details and curated design to build buyer confidence before project specifics.
Exclusive

Relevant or Redundant: Will Tech Kill Display Suites?

Vanessa Croll
7 Min
Exclusive

Missing Heart: Why The Gold Coast Needs a CBD

Phil Bartsch
7 Min
Traders in purple Northsea Wollongong EDM
Exclusive

Affordable Housing Bonus Drives Mixed-Tenure Momentum

Clare Burnett
6 Min
Exclusive

Industry Stoush Looms Over Construction Code Pause

Patrick Lau
4 Min
Exclusive

New Wave of Capital Washes Over Evolving Surf Park Sector

Phil Bartsch
11 Min
View All >
Mermaid Beach The Alfred Revised Da hero
Residential

Plans for Gold Coast Lifestyle Hub Spin-Off Upscaled

Phil Bartsch
Central Element Lavender Bay EDM
Residential

Central Element Forges Ahead with Lavender Bay Scheme

Clare Burnett
Infrastructure

Brisbane Games: 20 Put Up Hand to Build Olympic Heart

Lindsay Saunders
The Victoria Park masterplan that includes the city’s showgrounds will create a world-class hub ahead of the 2032 Olympi…
LATEST
Mermaid Beach The Alfred Revised Da hero
Residential

Plans for Gold Coast Lifestyle Hub Spin-Off Upscaled

Phil Bartsch
2 Min
Central Element Lavender Bay EDM
Residential

Central Element Forges Ahead with Lavender Bay Scheme

Clare Burnett
2 Min
Infrastructure

Brisbane Games: 20 Put Up Hand to Build Olympic Heart

Lindsay Saunders
2 Min
Affordable & Social Housing

Final Call for Affordable Housing Summit Registration

David Di Marco
2 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/apartment-building-registers-18th-month-of-decline