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Those keeping an eye on real estate in Australia will be interested to note Master Builders Australia's forecast for the building and construction industries.
According to Master Builders Australia, a major industry association, the value of residential building work done is set to improve from its low base over the next three years.
Master Builders Australia's primary role is to promote the interests and viewpoints of the building and construction industry and to provide a range of different services. It has over 33,000 member companies and is represented nationwide.
Over the next few years, the value of the residential building work done in real terms is set to grow from $46.2 billion in 2012-13 to $60.9 billion in 2015-16.
What does this mean for the real estate industry?
Dwelling commencements are predicted to rise to 164,000 in 2013-14, 179,000 in 2014-15 and 183,000 in 2015-16.
Master Builders predicts that low interest rates will help to release pent up demand after a long period of under-building which occurred simultaneously with strong population growth.
The industry will still face some challenges though, according to Peter Jones, chief economist for Master Builders Australia.
"The key risks to the forecasts are frail consumer confidence, economic uncertainty, asset price volatility and ongoing softness in the labour market," said Mr Jones.
States predicted to perform the strongest are Queensland, New South Wales and Western Australia.
