Australian property developers play their part in contributing to the economic development of the country, and in giving economic direction to the communities in which they develop. Whether it be residential or commercial complexes, these developments shape, to some extent, the economic direction of local economies. This blog explores property development in Australia, and how it contributes to the creation of jobs, a boost of local businesses, and the overall improvement of the economic outlook. The team at PDG explores more on the topic.
One main reason behind Australia’s prominence in job creation is property development, which has an enormous impact on the labour market. The construction industry contributes greatly to job creation. It is one of the biggest employers in Australia, with more than 267,600 people employed in Victoria’s construction sector from 2022-23. Australia-wide, the construction sector accounts for nearly 9.4% of work, illustrating its leading role in overall employment.
Over the past decade or so, some of the pay perks for those working in construction have been increasing. Nationwide, the construction industry saw a 2.8% increase in employment over the last year, growing by 36,300 workers. Employers have had to raise employment incentives to lure diligent professionals, primarily driven by an increase in demand for human labour.
For instance, wages and salaries in the sector increased by 12.7%, or $9.8 billion, despite only a 1.8% rise in employment. As the number of construction workers rises, better conditions are created for employees. It proves that property development is capable of delivering employment opportunities, as well as creating better working conditions.
Property development projects have positively boosted local economies by supporting surrounding businesses. One example is the redevelopment of the Docklands in Melbourne, which was turned into a lively entertainment, commercial and residential district. Many owners have seen a surge in custom due to increased foot traffic from the development project.
Many enterprises that form part of the supply chain for property developments are local, ranging from those that supply materials to those providing professional services, including legal and financial advice. Property development projects are instrumental in the growth and sustainability of small and medium-sized enterprises (SMEs).
The property development sector is a powerhouse of economic growth, contributing significantly to both local and national economies. The sector’s impact on GDP, investment, and infrastructure development is substantial. For instance, the property industry was the largest direct contributor to GDP, totalling $202.9 billion in 2015-16, an increase of $20.4 billion since 2013-14. This growth underscores the sector’s critical role in the national economy.
Additionally, the property industry generates substantial tax revenues, contributing approximately $87.9 billion annually in combined Australian, state, territory, and local government tax revenues. This contribution, which increased by $15.8 billion over recent years, is vital for funding public services and infrastructure development.
The impact of Australian property developers on local businesses is both substantial and multifaceted. Property developers are essential to the economic development of Australia by fostering employment creation, supporting local businesses, and contributing to overall economic growth. Their initiatives not only influence the physical landscape but also stimulate economic growth and community revitalisation.
PDG, a prominent property development company, is dedicated to the development of exceptional living and working environments that improve the quality of life in local communities and landscapes. We endeavour to maintain contributions to Australia’s economic growth and vitality, by emphasising sustainable and innovative development practices. Investigate our most recent initiatives and discover how PDG is revolutionising the property development sector.
For additional details regarding our initiatives and projects, please contact the PDG website.
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