A recent consumer survey conducted by Equifax reveals a growing demand for construction in Australia, coupled with persistent trust issues plaguing the industry.
The research, released on October 17, 2024, highlights a significant increase in Australians planning to purchase, renovate, or build properties in the next five years, rising from 45 per cent in 2023 to 51 per cent in 2024.
Despite this upward trend in demand, the construction sector continues to grapple with a crisis of confidence.
Only one-third of Australians (32 per cent) hold a positive view of the industry, while a concerning 40 per cent report that their perception has worsened over the past year.
Furthermore, 20 per cent of respondents anticipate a further decline in the industry’s performance over the next 12 months.
Brad Walters, Head of Product and Rating Services at Equifax, emphasised that concerns about the construction industry are second only to housing affordability as barriers to property investment.
He noted: “Four in 10 (41 per cent) Australians identified a shortage of reliable and qualified builders as a key barrier to buying, building or renovating a property, and the same number raised concerns around construction delays and build times.”
The survey also revealed widespread apprehension about building quality and potential defects, with 85 per cent of Australians expressing concern.
Additionally, 80 per cent of respondents worried about insolvencies in the construction industry.
These concerns are even more pronounced among those planning to enter the property market, with 73 per cent of potential buyers, builders, or renovators voicing anxiety about the impact of high demand and low supply on building quality.
Despite these challenges, trust remains a highly valued asset in the construction sector. An overwhelming 90 per cent of Australians agree on the importance of having confidence in building and construction professionals.
This sentiment is reflected in the willingness of 72 per cent of prospective property investors to pay for independent assurance of working with trustworthy developers or building professionals.
In response to these trust issues, independent rating tools like the Independent Construction Industry Rating Tool (iCIRT) are gaining traction.
Among Australians aware of iCIRT, 69 per cent reported an improved perception of the construction industry over the past year, compared to just 18 per cent overall.
The awareness of such tools has increased from 24 per cent to 31 per cent in the past year, rising to 44 per cent among those with property plans in the next five years.
Walters sees this growing awareness as a positive sign, stating: “This growth is so encouraging because it means that Australians are becoming more diligent and learning how to better identify credible construction and building professionals.”
He added that for reliable industry players, increased awareness of iCIRT provides an opportunity to differentiate themselves and restore market confidence.
As the construction industry faces these challenges, tools like iCIRT, developed by Equifax in consultation with government and industry stakeholders, aim to rebuild trust by providing a star-rating system for building professionals.
This initiative represents a step towards addressing the trust deficit in the sector and supporting the long-term viability of Australia’s construction industry.
