Next Big Futures article With new construction booming and rising demand for new homes, new commercial renovation schemes have sprung up to help with the transition to a new market and manage the new construction, according to an industry group.
The Commercial Resilience and Regeneration Association (CRA) estimates that new commercial construction projects account for nearly 60 per cent of new homes sold in Australia.
A new residential market is set to hit Australia’s shores in the next decade with an estimated 20 million homes to be built.
However, there are some key challenges facing the sector.
The number of homes under construction in Australia has decreased significantly in recent years, with more and more builders opting to start building their new homes from scratch.
The government is looking to introduce a new scheme to ease some of the strain on existing commercial property owners, including ensuring more of the land for new construction can be leased out for affordable use.
“Commercial renovation has seen a significant increase in popularity over the past couple of years with the demand being there for more affordable and sustainable residential development,” said Craig Anderson, the chief executive officer of the CRA.
The association’s executive director, Dr Joanne Young, said commercial renovation could be a great opportunity for the sector, which was growing rapidly.
“We have seen a huge increase in demand for residential development and the government needs to do a bit more to help people make the transition,” she said.
The CRA wants to see more affordable housing projects in the area, with a focus on areas that had been left out of the housing boom.
“It’s been a big change in a couple of areas where it’s not been as popular,” she added.
Commercial projects have been developed for some of Australia’s most expensive real estate, including the Gold Coast, Perth, Adelaide, and Brisbane.
However the association is also working to reduce the cost of commercial projects.
“There is a need for commercial projects that are less expensive and require fewer staff,” Ms Young said.
“For example, some commercial projects may be set up for a single house and then expand to two or three houses.
These are very low cost projects.”
Ms Young said the commercial renovation industry was not the only one to benefit from the new scheme.
“The government has also put forward a scheme that has a focus around affordable and accessible housing and will see a reduction in the number of commercial construction sites,” she continued.
The new scheme will see existing commercial sites re-listed and new residential properties will be required to be resettled.