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ConsTrack360 expects the residential building construction sector to improve, driven by improved access to credit. In addition to this, the Reserve Bank of Australia has cut interest rates, making credit cheaper in the country. The First Home Loan Deposit Scheme along with interest rate cut is expected to drive growth. Consequently, ConsTrack360 expects a positive outlook for the residential building construction sector. However, the present economic turmoil is expected to affect the overall construction sector growth over the next two to three years.
The commercial construction in the country is expected to record moderate growth over the next 4-8 quarters. Improved investment scenario in hospital work primarily due to rising demand for Covid-19 is likely to support the sector. Additionally, investments in school and leisure projects are all good news for the construction sector in Australia. With the need for improved e-commerce facilities, efficiencies, and growing demand because of population growth in NSW and Victoria demand for the warehouse is likely to grow in the country.
With AUD$100 billion allocated to infrastructure projects in the Australian budget for rail, roads, and car parks – the construction sector is looking promising. A new bridge is under development in NSW, the Nowra Bridge involves the construction of four lane-bridge to ease congestion in the city. Furthermore, leading construction companies are getting large infrastructure development projects. For instance, in August 2020, CPB Contractors awarded two infrastructure development projects worth AUD$128 million, in Western Australia and Queensland. In addition to this, the demand for warehouses is further supported by the increasing number of data centers in Australia and increase in storage demand for port containers.
To know more and gain a deeper understanding of the Australian construction industry, click here.
