|
|
|
|
|
|
|
Construction activity in the midst of prolonged upturn, more growth to follow over next three years
Currently driven by non-residential building with support from transport and utilities.
|
The construction industry is in the midst of a multi-year upswing cycle. This upturn will be characterised by steady momentum over 5 years to 2026/27.
|
Construction activity will initially be led by government spending in non-residential building and transport infrastructure, and then later supported by further rises from the next residential building recovery.
|
|
The construction upturn began in 2021/22, albeit recording a modest 2% annual growth that year. Construction activity has since picked up pace as work done increased by 6% in 2022/23 and a further 6% rise is estimated for 2023/24. Total construction is expected to rise to a peak in late 2027, after which work done will gradually edge lower.
|
|
|
The main drivers of the upturn are:
|
- Big government health building programs
- A strong rise in factories and warehouses, the latter driven by growth in on-line commerce, plus a surge in data centres
- Later, the next housing boom, driven by very high migration and expected falls in interest rates
- A multi-year surge in road and rail infrastructure
- A large wave of renewable energy investment
- Resources construction is expected to continue rising, driven mainly by LNG projects and critical minerals investments
|
|
|
|
If your organisation requires help with construction sector forecasts or project cost escalation forecasts, please get in touch with us, at info@macromonitor.com.au.
|
|
|
Our most recent reports:
|
|
|
|
|
Australian Construction Cost Trends
|
|
|
This report examines the outlook for construction costs, in detail be sector and type of input.
|
|
|
|
|
|
|
|
Australian Construction Projects Database
|
|
|
This latest list of projects corresponds with our fully revised set of forecasts published in November 2023.
|
|
|
|
|
|
|
|
Australian Regional Construction Outlook
|
|
|
Our latest regional forecasts for residential building and construction have just been released.
|
|
|
|
|
|
|
|
Australian Construction Materials Forecasts
|
|
|
Our latest forecasts assess the implications for construction materials demand of the current outlook for building and construction.
|
|
|
|
|
|
|
|
Australian Road and Bridge Works
|
|
|
This report examines the strength and composition of the current upturn, and determines the likely timing of the peak, and subsequent decline.
|
|
|
|
|
|
|
|
|
