As the construction industry continues to flounder, two-thirds of Australians fear that building quality is set to plummet.
New research by the data and analytics company Equifax has revealed that a majority of Australians are worried that low housing supply will spur construction companies to cut corners as they try to supply the homes the country needs as quickly as possible.
Almost seven in 10 Australian adults are concerned about the growing number of construction company insolvencies, fearing that this will make housing supply even tighter than it already is.
In fact, the research found that only three in 10 Australians have a positive perception of the construction industry.
Equifax head of product and rating services, Brad Walters, noted that there is “a big gap to bridge” between where the public’s current perception of the construction industry sits and where stakeholders would like it to be.
“How can we support consumers and create an opportunity for the building and construction industry after a period of turbulence?” Mr Walters asked. “That is the big question here.”
“We know there are many capable, reliable and resilient industry players that are dedicated to doing the right thing. The opportunity is there to rebuild consumer trust,” he stated.
According to the Equifax research team, one solution to gaining back consumer trust could be wider implementation of independent rating tools to winnow out the good construction companies from the bad.
Over six in 10 respondents said they would be willing to pay more for certified property developers or building professionals, sharing that they would pay an average premium of 6 per cent for this assurance.
When looking at respondents who have property plans for the next five years, this jumped up to a massive 76 per cent of respondents who would be happy to pay extra for a certified company.
“We’ve seen Australians familiarising themselves with independent rating tools and learning to use them when looking for credible construction firms and building professionals,” said Mr Walters.
“The correlation between the awareness of independent rating tools and change in perception of the construction industry is tangible,” he stated.
With 45 per cent of Australians planning to purchase, renovate or build within the next five years, and 1.2 million homes pledged to be built by 2029, public perception of the construction industry will play a substantial role in the nation’s housing market for some years to come.
Article source: www.smartpropertyinvestment.com.au