The metropolitan areas of Sydney and Melbourne plateaued in 2018/19 and we are expecting downturns in both regions over the next couple of years as the residential sector continues to weaken. We expect that both downturns will be softened however by booming commercial building sectors and a number of large urban transport infrastructure projects (road and rail) in each city.
The Brisbane market has started an upturn off the back of strengthening non-residential building and transport infrastructure projects, despite the continuing drop in apartment buildings.
Perth has declined over the past few years, mainly due to a big drop in residential building and a weak economy (related to the mining downturn). Transport projects and small upturns in non-residential building and utilities should provide some short-term improvement in 2019/20, but total activity is then expected to be relatively flat with a slight trend down over the next few years.
The resources-dominated Pilbara has seen enormous downturns in activity and big outflows of people but is expected to rebound reasonably strongly from 2019/20.