Business

Western Australian building biggest new homes in Australia

Western Australian building biggest new homes in Australia

Government lockdowns in response to the COVID-19 pandemic have prompted WA home builders to reassess their housing needs with more time spent at home for both work and leisure.

During the past seven years homes became progressively smaller on average and apartments were embraced.

However, data commissioned by CommSec from the Australian Bureau of Statistics shows Australia is again building the biggest homes - defined as both detached houses and apartments - in the world.

The ABS data shows the average new Australian home built in 2019/20 was 195.8 square metres, up 3 per cent on the year.

Western Australia is building the biggest homes in the country with the average standing at 218.5sqm.

The average size of a new detached house in WA 235.5sqm while new apartments were 150.5sqm.

CommSec economists Craig James and Ryan Felsman said the recent experience with COVID-19 has certainly caused more families to look for bigger homes and caused others to add extra rooms to existing homes.

The pandemic may also lead to greater cohabitation, such as children returning to their family or parents living with their parents.

If more people decide to work from home, this will have implications for central business districts of capital cities, including office and retail space usage, cafes and restaurants, services such as hairdressers and public transport services.

If more opt for a sea change, this will have implications for home prices, housing supply, and roads, schools and hospitals in outer suburbs and regional areas.

Mr James and Mr Felsman say the trends from COVID-19 are still emerging.

“If a vaccine were to be found in coming days and weeks, then there may be a return to pre-virus ’normalcy’,” they said.

“However, it certainly does appear that many so-called norms have been challenged and are, or are being, reassessed.”