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Construction in Australia - Key Trends and Opportunities by State and Territory to 2023

Construction in Australia - Key Trends and Opportunities by State and Territory to 2023

Summary

The overall Australian construction industry is facing a troubled period ahead, with 2019 set to be another year of decline in total output, following the negative outturn in 2018. Although this partly reflects a lull in activity in construction on major energy projects, of greater concern is the weakness in the residential sector. However, infrastructure investment is set to strengthen, which will contribute to growth momentum over the forecast period. The election victory for the Liberal-National coalition government in the May 2019 elections ensures continuity across a range of major infrastructure development programs and projects.

The industry’s output value, measured at constant 2017 US dollar exchange rates, declined from US$171.6 billion in 2017 to US$165.3 billion in 2018, reflecting a sharp drop in activity in the oil and gas sector as major projects were completed. The industry is expected to remain weak in 2019, contracting by 2.4% in real terms, before regaining growth momentum over the remainder of the forecast period (2019-2023).

The improvement will be driven by investments in transport infrastructure, with the government planning to invest AUD75.0 billion (US$58.9 billion) to develop the country’s transport infrastructure by 2027-2028. Commercial and industrial projects and an improvement in consumer and investor confidence will also provide support, offsetting the downturn in residential construction.

The government has promised to invest AUD2 billion (US$1.5 billion) to construct a fast rail network between Geelong and Melbourne and AUD9.3 billion (US$6.8 billion) on the Inland Rail Project. Other notable investments include AUD7.1 billion (US$5.2 billion) for infrastructure projects in Western Sydney, of which AUD3.6 billion (US$2.64 billion) will be allocated for the Western Sydney Infrastructure Plan for road and transport connections to the new airport at Badgerys Creek and AUD3.5 billion (US$2.57 billion) for the North-South Rail Link.

The industry’s output value in real terms is expected to rise at a compound annual growth rate (CAGR) of 2.14% over the forecast period, compared to -1.59% during the review period (2014-2018). The industry is consequently expected to rise from a value of US$165.3 billion in 2018 to US$183.7 billion in 2023, measured at constant 2017 US dollar exchange rates.

Residential construction was the largest market in the Australian construction industry during the review period, accounting for 36% of its total value in 2018. The market is expected to shrink over the forecast period, to account for 31.6% of the industry’s total value in 2023; this reflects the rapid expansion in recent years and consequent oversupply of residential buildings, as well as tighter lending conditions. Energy and utilities construction accounted for 20.4% of the industry’s total output in 2018, followed by infrastructure construction with 15.5%, commercial construction with 13.8%, industrial construction with 7.5% and institutional construction with 6.7%.

The total construction project pipeline in Australia including all mega projects with a value above US$25 million - stands at AUD1.4 trillion (US$1 trillion). The pipeline, which includes all projects from pre-planning to execution, is skewed towards early-stage projects, with 56.8% of the pipeline value being in projects in the pre-planning and planning stages as of June 2019.

The report Construction in Australia - Key Trends and Opportunities by State and Territory to 2023, provides detailed market analysis, information and insights into the Australian construction industry, including -

  • The Australian construction industry's growth prospects by market, project type and construction activity
  • Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Australian construction industry
  • Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline
Scope

This report provides a comprehensive analysis of the construction industry in Australia. It provides -
  • Historical (2014-2018) and forecast (2019-2023) valuations of the construction industry in Australia, featuring details of key growth drivers.
  • Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
  • Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
  • Listings of major projects, in addition to details of leading contractors and consultants
Reasons to buy
  • Identify and evaluate market opportunities using GlobalData's standardized valuation and forecasting methodologies.
  • Assess market growth potential at a micro-level with over 600 time-series data forecasts.
  • Understand the latest industry and market trends.
  • Formulate and validate strategy using GlobalData's critical and actionable insight.
  • Assess business risks, including cost, regulatory and competitive pressures.
  • Evaluate competitive risk and success factors.


  • Executive Summary
  • Construction Outlook: At-a-glance
    • Table Construction Outlook
    • Table Figure 1: Key Markets, Construction Output Growth Matrix and Risk Matrix
    • Table Figure 2: Australia, Construction Projects Pipeline by Sector (AUD Billion)
  • Latest News and Indicators
    • Table Figure 3: Australia, Dwelling Permits Approved (Units)
    • Table Figure 4: Australia, Residential Property Price Index
  • Key Drivers and Risks
    • Economic Performance
      • Table Australia, Key Economic Indicators
    • Political Environment
    • Demographics
    • Risk Profile
      • Table Figure 5: Australia, Risk Profile
      • Table Figure 6: Australia, Risk Comparison
  • Construction Outlook
    • All Construction
      • Outlook
        • Table Figure 7: Australia, Construction Output Value (Real, US$ billion, 2017 prices and exchange rate)
        • Table Figure 8: Australia, Construction Output Value, Growth Matrix
        • Table Figure 9: Australia, Construction Output Value, by Sector (AUD Million), 2014-2023
      • Project analytics
        • Table Figure 10: Australia, Construction Projects Pipeline, Projected Annual Spending by Stage (AUD Billion), 2018-2023
        • Table Figure 11: Australia, Construction Projects Pipeline, Value by Stage (AUD Billion)
        • Table Australia, Construction Output Value (nominal, AUD Million)
        • Table Australia, Construction Output Value (nominal, US$ Million)
    • Commercial Construction
      • Outlook
        • Table Figure 12: Australia Commercial Construction Output by Project Type (AUD Million), 2014-2023
      • Project analytics
        • Table Figure 13: Australia, Commercial Construction Projects Pipeline, Value by Stage (AUD Billion)
        • Table Figure 14: Australia, Commercial Construction Projects Pipeline, Projected Annual Spending by Stage (AUD Billion), 2018- 2023
        • Table Australia, Top Commercial Construction Projects by Value
    • Industrial Construction
      • Outlook
        • Table Figure 15: Australia, Industrial Construction Output by Project Type (AUD Million), 2014-2023
      • Project analytics
        • Table Figure 16: Australia, Industrial Construction Projects Pipeline, Value by Stage (AUD Billion)
        • Table Figure 17: Australia, Industrial Construction Projects Pipeline, Projected Annual Spending by Stage (AUD Billion), 2018-2023
        • Table Australia, Top Industrial Construction Projects by Value
    • Infrastructure Construction
      • Outlook
        • Table Figure 18: Australia, Infrastructure Construction Output by Project Type (AUD Million), 2014-2023
      • Project analytics
        • Table Figure 19: Australia, Infrastructure Construction Projects Pipeline, Value by Stage (AUD Billion)
        • Table Figure 20: Australia, Infrastructure Construction Projects Pipeline, Projected Annual Spending by Stage (AUD Billion), 2018- 2023
        • Table Australia, Top Infrastructure Construction Projects by Value
    • Energy and Utilities Construction
      • Outlook
        • Table Figure 21: Australia, Energy and Utilities Construction Output by Project Type (AUD Million), 2014-2023
      • Project analytics
        • Table Figure 22: Australia, Energy and Utilities Construction Projects Pipeline, Value by Stage (AUD Billion)
        • Table Figure 23: Australia, Energy and Utilities Construction Projects Pipeline, Projected Annual Spending by Stage (AUD Billion), 2018-2023
        • Table Australia, Top Energy and Utilities Construction Projects by Value
    • Institutional Construction
      • Outlook
        • Table Figure 24: Australia, Institutional Construction Output by Project Type (AUD Million), 2014-2023
      • Project analytics
        • Table Figure 25: Australia, Institutional Construction Projects Pipeline, Value by Stage (AUD Billion)
        • Table Figure 26: Australia, Institutional Construction Projects Pipeline, Projected Annual Spending by Stage (AUD Billion), 2018- 2023
        • Table Australia, Top Institutional Construction Projects by Value
    • Residential Construction
      • Outlook
        • Table Figure 27: Australia, Residential Construction Output by Project Type (AUD Million), 2014-2023
      • Project analytics
        • Table Figure 28: Australia, Residential Construction Projects Pipeline, Value by Stage (AUD Billion)
        • Table Figure 29: Australia, Residential Construction Projects Pipeline, Projected Annual Spending by Stage (AUD Billion), 2018- 2023
        • Table Australia, Top Residential and Mixed-Use Construction Projects by Value
  • New South Wales
    • All Construction
      • Outlook
        • Table Figure 30: New South Wales, Construction Output Value, by Sector (AUD Million), 2014-2023
        • Table New South Wales, Construction Output Value (nominal, AUD Million)
        • Table New South Wales, Construction Output Value (nominal, US$ Million)
    • Key Drivers and Risks
      • Economic Performance
      • Political Environment
      • Demographics
    • Latest News and Indicators
      • Table Figure 31: New South Wales, Dwelling Permits Approved (Units)
      • Table Figure 32: Sydney, Residential Property Price Index
  • Victoria
    • All Construction
      • Outlook
        • Table Figure 33: Victoria, Construction Output Value, by Sector (AUD Million), 2014-2023
        • Table Victoria, Construction Output Value (nominal, AUD Million)
        • Table Victoria, Construction Output Value (nominal, US$ Million)
    • Key Drivers and Risks
      • Economic Performance
      • Political Environment
      • Demographics
    • Latest News and Indicators
      • Table Figure 34: Victoria, Dwelling Permits Approved (Units)
      • Table Figure 35: Melbourne, Established Housing Prices Index
  • Queensland
    • All Construction
      • Outlook
        • Table Figure 36: Queensland, Construction Output Value, by Sector (AUD Million), 2014-2023
        • Table Queensland, Construction Output Value (nominal, AUD Million)
        • Table Queensland, Construction Output Value (nominal, US$ Million)
    • Key Drivers and Risks
      • Economic Performance
      • Political Environment
      • Demographics
    • Latest News and Indicators
      • Table Figure 37: Queensland, Dwelling Permits Approved (Units)
      • Table Figure 38: Brisbane, Established Housing Prices Index
  • South Australia
    • All Construction
      • Outlook
        • Table Figure 39: South Australia, Construction Output Value, by Sector (AUD Million), 2014-2023
        • Table South Australia, Construction Output Value (nominal, AUD Million)
        • Table South Australia, Construction Output Value (nominal, US$ Million)
    • Key Drivers and Risks
      • Economic Performance
      • Political Environment
      • Demographics
    • Latest News and Indicators
      • Table Figure 40: South Australia, Dwelling Permits Approved (Units)
      • Table Figure 41: Adelaide, Established House Price Index
  • Western Australia
    • All Construction
      • Outlook
        • Table Figure 42: Western Australia, Construction Output Value, by Sector (AUD Million), 2014-2023
        • Table Western Australia, Construction Output Value (nominal, AUD Million)
        • Table Western Australia, Construction Output Value (nominal, US$ Million)
    • Key Drivers and Risks
      • Economic Performance
      • Political Environment
      • Demographics
    • Latest News and Indicators
      • Table Figure 43: Western Australia, Dwelling Permits Approved (Units)
      • Table Figure 44: Perth, Established House Price Index
  • Tasmania
    • All Construction
      • Outlook
        • Table Figure 45: Tasmania, Construction Output Value, by Sector (AUD Million), 2014-2023
        • Table Tasmania, Construction Output Value (nominal, AUD Million)
        • Table Tasmania, Construction Output Value (nominal, US$ Million)
    • Key Drivers and Risks
      • Economic Performance
      • Political Environment
      • Demographics
    • Latest News and Indicators
      • Table Figure 46: Tasmania, Dwelling Permits Approved (Units)
      • Table Figure 47: Hobart, Established House Price Index
  • Northern Territory
    • All Construction
      • Outlook
        • Table Figure 48: Northern Territory, Construction Output Value, by Sector (AUD Million), 2014-2023
        • Table Northern Territory, Construction Output Value (nominal, AUD Million)
        • Table Northern Territory, Construction Output Value (nominal, US$ Million)
    • Key Drivers and Risks
      • Economic Performance
      • Political Environment
      • Demographics
    • Latest News and Indicators
      • Table Figure 49: Northern Territory, Dwelling Permits Approved (Units)
      • Table Figure 50: Darwin, Established Housing Price Index
  • Australian Capital Territory
    • All Construction
      • Outlook
        • Table Figure 51: Australian Capital Territory, Construction Output Value, by Sector (AUD Million), 2014-2023
        • Table Australian Capital Territory, Construction Output Value (nominal, AUD Million)
        • Table Australian Capital Territory, Construction Output Value (nominal, US$ Million)
    • Key Drivers and Risks
      • Economic Performance
      • Political Environment
      • Demographics
    • Latest News and Indicators
      • Table Figure 52: Australian Capital Territory, Dwelling Permits Approved (Units)
      • Table Figure 53: Canberra, Established Housing Price Index
  • Key Industry Participants
    • Contractors
      • Table Australia, Key Contractors
      • Table Figure 54: Australia, Headquarters of Key Contractors (% of Total Project Pipeline)
      • Table Figure 55: Australia, Headquarters of Foreign Contractors (% of Project Pipeline with Foreign Contractor)
    • Consultants
      • Table Australia, Key Consultants
      • Table Figure 56: Australia, Headquarters of Key Consultants (% of Total Project Pipeline)
      • Table Figure 57: Australia, Headquarters of Foreign Consultants (% of Project Pipeline with Foreign Consultants)
  • Appendix
    • What is this Report About?
    • Definitions
      • Table GlobalData Construction Market Definitions
      • Table Construction Risk Index Ratings and Scores
  • About GlobalData
    • GlobalData at a Glance
      • Table Figure 58: GlobalData at a Glance
    • GlobalData Construction
    • Disclaimer
    • Contact Us

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