This information comes from a report released by research company BIS Shrapnel titled State Economic and Industry Prospects: NSW 2013-2023.
According to the findings in the report, the total value of activity for residential, non-residential and engineering construction will reach $48.6 billion by 2016-17. This is a sharp 23 per cent increase from the value seen in 2012.
Furthermore, by the year 2017 BIS Shrapnel expects New South Wales to be the leading state in the country for residential activity. This will be partly due to the two strong performing states of Western Australia and Queensland seeing a lower level of mining activity, and therefore construction will drop.
“Back then, we were saying that Queensland and Western Australia were the places to be for construction growth,” said Adrian Hart, BIS Shrapnel’s senior manager for infrastructure and mining.
“But now, with mining-related construction expected to fall 30 per cent over the next four years, the pendulum is swinging back towards New South Wales.”
Mr Hart noted that construction of residential real estate has already begun to pick up, with this activity expected to continue and accelerate over the next two years.
There has been evidence of this in the real estate market in the Housing Industry Association’s (HIA) NSW State Outlook report for Winter 2013.
The HIA found in their report that the level of residential dwelling starts has given a strong performance during 2013, with this expected to grow even further during the remainder of the year.
In fact, the HIA has predicted dwelling starts will reach a decade high this year.
“It is encouraging to see a long overdue recovery underway in the New South Wales new home building market after a decade of underwhelming activity levels,” said HIA NSW Executive Director David Bare.
“The improving situation is the result of strong population growth, the low level of interest rates, and the NSW state government focus on boosting new housing supply.”
These increased housing starts predicted for the rest of the year will be a welcome change for those looking for real estate in Sydney, as it will mean a rise in available houses on the market.