Demand for apartment living is rising fast in Australia, driven by rapid immigration growth and house values reaching an affordability ceiling.
With the Federal government’s ambitious plan to build 1.2 million homes over five years, the obvious solution is to ‘build up’, not out.
And where there is a will, there is a way, particularly as reportedly apartment values are already rising faster than houses in 50pc of all suburbs, according to the Australian Financial Review (AFR).
“Australia’s chronically undersupplied housing market is heading for another development boom and apartments will lead the way”, The AFR’s Michael Bleby recently wrote.
Those of us in the construction industry are preparing for the clear challenges that lie ahead – with labour, supply chain issues and soaring costs suppressing enthusiasm.
We are all too aware that the last time there was the largest historical boom in high-rise urban apartment construction (the 2010s), it brought with it a corresponding surge in construction faults and quality problems.
Built Too Fast Or Built To Last?
Building regulation consultant, Bronwyn Weir, recently warned that constructing so many apartments so quickly would likely result in compromised standards and another boom in faulty apartment towers.
However, the difference now is that the construction industry has a regulatory framework in place and a critical rating system – both of which bring quality assurance, and resulting consumer trust and confidence back to the industry.
Recent developments in residential construction in 2024, have bolstered feasibility and affordability.
We are also seeing the industry rapidly evolving, with residential construction primed for innovation and transformation.
Construction Industry Turns To Innovation & Technology
Under increased consumer scrutiny and after with pressure to build an unprecedented number of new apartments, the industry, already under severe margin pressure, is turning to technology-based innovation for solutions.
AI – The architecture and design sector, in particular, is poised for major applications, especially with the rise of generative AI. AI algorithms are utilised for risk assessment, project scheduling and resource allocation. AI is likely to become more commonplace across construction.
3D Printing – Revolutionising on-site construction with speed and precision.
Robotics & Automation – for repetitive and labour-intensive tasks.
Drones & UAVs – Aerial insights and site surveying as well as project monitoring.
Autonomous Vehicles & Equipment – Streamlining logistics and operations.
Modular Construction – Offsite produced prefabrication, from projects to products, has been enhanced by the new digital tools and resulting in innovative, aesthetic and efficient outcomes.
BIM – Transforming design and collaboration through Building Information Modelling.
Construction Management Software – Software platforms that offer end-to-end solutions for reporting, project management, communication and scope of work, are making stakeholder intensive construction processes more streamlined.
DLP Manager was created just two years ago, to provide a breakthrough customer-first solution for the post construction warranty period, to manage defects.
In Summary
Whether the ambition of 1.2 million homes is achievable or not, is subject to intense debate. However, one thing is certain: The construction industry is set to grow and evolve rapidly from this point on.
Now is a great time to reflect on how you are setting your business up for success over the next five years and beyond.
Does your business need a post construction strategy? We can help. Contact us for a free consultation.
Contact Chris Polin cpolin@dlpmanager.com for more.