The construction of high-density density dwellings in Sydney is expected to see a massive decline over the next year. In fact, by 2018, there’s expected to be roughly 50% fewer construction projects for high density dwellings when compared to 2015 and 2016. While recruitment agencies in Sydney were struggling to keep up with the demand a couple years ago, could this be a sign of fewer jobs in Sydney coming available in the near future?
When you take a look at the bigger picture, it’s possible the building boom reached its peak and is now beginning to stabilise. Some are worried that high density construction has lost its edge in Sydney, but that’s not necessarily the case.
High Density Construction Was Not Sustainable
Experts in Sydney expected a decline in the construction of high-density dwellings, simply because the path was not sustainable. The good news is many of the projects approved during the building boom are still under construction, so jobs in Sydney will still be available for the foreseeable future. The only concern is whether the demand will be able to keep up with the supply after the buildings are complete.
Potential Impacts in Loss of Demand
A drop in demand could mean difficulties in attracting both foreign and local investors and buyers. The cost of doing business in Australia could increase significantly, and make it a less attractive option. The lower the demand, the less funding will be available for high-density projects in the future. The worst-case scenario in this situation would be a long-term shortage that could affect jobs in Sydney for many years.
How Jobs Are Affected By Fewer High-Density Construction Projects
Economies around the world always fluctuate. With the recent building boom in Sydney and across Australia, sustainability was simply not realistic. While it may seem like the economy could be taking a downturn, many experts view it as returning back to stability. There may not be as many high-density construction projects in the short-term, but once the economy stabilises for a significant amount of time, the outlook for jobs in Sydney will improve once again.
High-density construction isn’t necessarily losing its edge in Sydney, but it will likely be a very long time before it experiences another building boom. To see how construction recruitment agencies in Sydney handled the building boom, and how they expect the outlook of jobs to be in the near future, contact us at any time.