Market Research Report
Construction in Australia - Key Trends and Opportunities by State and Territory to 2025 (Q2 2021)
|Published by||GlobalData||Product code||703498|
|Published||Content info||76 Pages
Delivery time: 1-2 business days
|Construction in Australia - Key Trends and Opportunities by State and Territory to 2025 (Q2 2021)|
|Published: May 3, 2021||Content info: 76 Pages||
The Australian construction industry is expected to grow by 2.2% in real terms in 2021 - up from a decline of 2.1% in 2020. The downturn in 2020 was due to the impact of the Coronavirus (COVID-19) pandemic on consumer and investor confidence, coupled with plummeting oil prices and a weak residential sector. Although the construction industry was designated as an essential service and exempted from lockdown restrictions, construction work was affected due to limitations on labor availability at worksites, social distancing restrictions and supply chain disruptions. As a result, the total value of construction work completed declined by 2.1% year on year (YoY) in 2020, according to the Australian Bureau of Statistics (ABS). This is attributed to a fall in building construction activities (-4.2%), which was slightly offset by a marginal increase in civil engineering works (0.9%).
In 2021, the industry's output will be supported by the government's focus on infrastructure investment to revive the pandemic-hit economy. In mid-June 2020, the government announced that 15 infrastructure projects worth AUD72 billion (US$49.1 billion) will be fast-tracked, supporting over 60,000 direct and indirect jobs. Moreover, the federal, state and territory governments have reached an agreement to cut approval time for infrastructure projects by half. In the fiscal year (FY) 2020/2021 (July to June) Budget, announced in early October 2020, the government announced plans to invest AUD7.5 billion (US$5.4 billion) on transport infrastructure projects across Australia, bringing the federal government's total commitment to infrastructure projects since the onset of the pandemic to AUD14 billion (US$9.5 billion) over the next four years.
Over the remaining years of the forecast period, GlobalData expects the industry to gain further momentum and register an annual average growth of 3.2% between 2022-2025, supported by the government's investments on road and rail infrastructure projects, the First Home Loan Deposit Scheme, the HomeBuilder program and the upgrade to the National Broadband Network. In April 2021, the government announced that it had received 121,000 HomeBuilder applications, expected to support residential construction projects worth AUD30 billion (US$18.4 billion). The residential sector's output over the forecast period will also be supported by the RBA's likely commitment to maintain a low official cash rate, coupled with improving economic activity and falling unemployment. In another positive development, most state governments have released their long-delayed budgets for FY2020/2021, with significant funding allocated towards transport, residential, health and educational infrastructure projects. Over the long term, the industry's growth will be supported by an investment of AUD110 billion (US$74.7 billion) on transport infrastructure project over the next 10 years through the rolling infrastructure plan, starting from FY2020/2021.
This report provides detailed market analysis, information, and insights into the Australian construction industry, including -
This report provides a comprehensive analysis of the construction industry in Australia. It provides -