Australian Construction Cost Trends

Construction cost inflation was 2.3% in 2018/19, but this is now expected to slow in 2019/20 and stay below 2% in 2020/21 and 2021/22. This slow-down is based on:

  • Slower growth in the Australian economy,
  • A downturn in the non-resources construction sector,
  • Potential declines in commodity prices, and
  • A stabilisation of the Australian dollar, with only a small further depreciation likely.