2021 is set to be a decisive year for many industries. Nowhere are these changes more pronounced than the building and construction industry that has been marred by so many changes over the last 12-months. In an industry that was effectively brought to its knees by health regulations, we are seeing the first rumblings of new work starting in some Australia, New Zealand, and many areas of South East Asia that are now facing reduced COVID-19 restrictions.
With that being said, we look at the three ways that the apartment building industry will be impacted in 2021.
The Pandemic Has Wreaked Havoc
Unsurprisingly, the largest economic impact over the last twelve months has been driven by the global pandemic. Even in areas such as Townsville, Queensland that has been relatively unmarred by the global pandemic, the sales and rental rates for Townsville Apartments has been slightly slower than in previous years. Occupancy fell to new lows in areas of Australia and urbanisation fell dramatically as people seek out downtown spots that were all within easy access to restaurants, bars, nightclubs, and shops.
Health Restrictions on the Worksite
Health restrictions on the worksite slowed construction dramatically over the lasr twelve months. The industry was brought to a standstill in May 2020 when workers were forced to take shelter at home. Unlike many other industries that were able to adapt to the changing conditions, the construction industry was not so fortunate.
As construction begins again, we expect to see government incentives and perks increase as a way to kick start the construction industry. In urban environments, apartments are the lifeblood of large communities and are at the forefront of government building incentives. We expect to see large scale production ramp back up in the first half of 2021 thanks to generous government incentives.