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

GlobalData’s Construction in Australia – Key Trends and Opportunities by State and Territory to 2023 report 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.

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 declined by 3.7% in real terms 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 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).

Key Highlights

- GlobalData expects the residential construction market to weaken over the forecast period and account for 31.6% of the industry’s total value in 2023. This is due to oversupply of new residential buildings in urban centers, as well as tighter lending conditions. Highlighting the gloomy outlook for the residential sector, the total number of dwelling units approved in the country decreased by 22.1% year-on-year in the first four months of 2019, according to the Australian Bureau of Statistics (ABS), following declines of 5.8% in 2018 and 4% in 2017.

- Forecast-period growth in the infrastructure construction market will be driven by the government and private sector investment in transport infrastructure. In the 2019 budget, the government announced plans to invest AUD100 billion (US$73.4 billion) to develop the country’s transport infrastructure over the next ten years. Through this, the government plans to develop road, rail, airport and other transport infrastructure with an aim to improve passenger and freight carrying capacity. Of the total budget, the government allocated AUD20.6 billion (US$15.1 billion) for the development of railway infrastructure and AUD4.5 billion (US$3.3 billion) for the road development.

- GlobalData expects the energy and utilities construction market to record a forecast-period CAGR of 6.28% in nominal terms, supported by the government’s investment in renewable energy infrastructure. The government aims to generate 50% of the total country’s energy mix from renewable energy by 2025. Accordingly, the government plans to install 10.0GW of new solar and wind power plant by the end of 2019, and generate 33,000GWh of renewable electricity by 2020.

- Industrial construction market’s forecast-period growth will be driven by the government’s focus on the expansion of manufacturing sector through the initiatives such as Supporting Advanced Manufacturing, Industry 4.0 and Transitioning Australia’s Automotive Manufacturing Industry. Under the Supporting Advanced Manufacturing Initiatives, the government encourages innovative production, investment in new technologies and provides facilities to test new products.

- The total construction project pipeline in Australia – as tracked by GlobalData, and 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.

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.

Companies mentioned

Table of Contents

Table of Contents

1 Executive Summary

2 Construction Outlook: At-a-glance

3 Latest News and Indicators

4 Key Drivers and Risks

4.1. Economic Performance

4.2. Political ...

Table of Contents

1 Executive Summary

2 Construction Outlook: At-a-glance

3 Latest News and Indicators

4 Key Drivers and Risks

4.1. Economic Performance

4.2. Political Environment

4.3. Demographics

4.4. Risk Profile

5 Construction Outlook

5.1. All Construction

5.1.1. Outlook

5.1.2. Project analytics

5.2. Commercial Construction

5.2.1. Outlook

5.2.2. Project analytics

5.3. Industrial Construction

5.3.1. Outlook

5.3.2. Project analytics

5.4. Infrastructure Construction

5.4.1. Outlook

5.4.2. Project analytics

5.5. Energy and Utilities Construction

5.5.1. Outlook

5.5.2. Project analytics

5.6. Institutional Construction

5.6.1. Outlook

5.6.2. Project analytics

5.7. Residential Construction

5.7.1. Outlook

5.7.2. Project analytics

6 New South Wales

6.1. All Construction

6.1.1. Outlook

6.2. Key Drivers and Risks

6.2.1. Economic Performance

6.2.2. Political Environment

6.2.3. Demographics

6.3. Latest News and Indicators

7 Victoria

7.1. All Construction

7.1.1. Outlook

7.2. Key Drivers and Risks

7.2.1. Economic Performance

7.2.2. Political Environment

7.2.3. Demographics

7.3. Latest News and Indicators

8 Queensland

8.1. All Construction

8.1.1. Outlook

8.2. Key Drivers and Risks

8.2.1. Economic Performance

8.2.2. Political Environment

8.2.3. Demographics

8.3. Latest News and Indicators

9 South Australia

9.1. All Construction

9.1.1. Outlook

9.2. Key Drivers and Risks

9.2.1. Economic Performance

9.2.2. Political Environment

9.2.3. Demographics

9.3. Latest News and Indicators

10 Western Australia

10.1. All Construction

10.1.1. Outlook

10.2. Key Drivers and Risks

10.2.1. Economic Performance

10.2.2. Political Environment

10.2.3. Demographics

10.3. Latest News and Indicators

11 Tasmania

11.1. All Construction

11.1.1. Outlook

11.2. Key Drivers and Risks

11.2.1. Economic Performance

11.2.2. Political Environment

11.2.3. Demographics

11.3. Latest News and Indicators

12 Northern Territory

12.1. All Construction

12.1.1. Outlook

12.2. Key Drivers and Risks

12.2.1. Economic Performance

12.2.2. Political Environment

12.2.3. Demographics

12.3. Latest News and Indicators

13 Australian Capital Territory

13.1. All Construction

13.1.1. Outlook

13.2. Key Drivers and Risks

13.2.1. Economic Performance

13.2.2. Political Environment

13.2.3. Demographics

13.3. Latest News and Indicators

14 Key Industry Participants

14.1. Contractors

14.2. Consultants

15 Appendix

15.1. What is this Report About?

15.2. Definitions

16 About GlobalData

16.1. GlobalData at a Glance

16.2. GlobalData Construction

16.3. Disclaimer

16.4. Contact Us

List of Tables

List of Tables

Table 1: Construction Outlook

Table 2: Australia, Key Economic Indicators

Table 3: Australia, Construction Output Value (nominal, AUD Million)

Table 4: Australia, ...

List of Tables

Table 1: Construction Outlook

Table 2: Australia, Key Economic Indicators

Table 3: Australia, Construction Output Value (nominal, AUD Million)

Table 4: Australia, Construction Output Value (nominal, US$ Million)

Table 5: Australia, Top Commercial Construction Projects by Value

Table 6: Australia, Top Industrial Construction Projects by Value

Table 7: Australia, Top Infrastructure Construction Projects by Value

Table 8: Australia, Top Energy and Utilities Construction Projects by Value

Table 9: Australia, Top Institutional Construction Projects by Value

Table 10: Australia, Top Residential and Mixed-Use Construction Projects by Value

Table 11: New South Wales, Construction Output Value (nominal, AUD Million)

Table 12: New South Wales, Construction Output Value (nominal, US$ Million)

Table 13: Victoria, Construction Output Value (nominal, AUD Million)

Table 14: Victoria, Construction Output Value (nominal, US$ Million)

Table 15: Queensland, Construction Output Value (nominal, AUD Million)

Table 16: Queensland, Construction Output Value (nominal, US$ Million)

Table 17: South Australia, Construction Output Value (nominal, AUD Million)

Table 18: South Australia, Construction Output Value (nominal, US$ Million)

Table 19: Western Australia, Construction Output Value (nominal, AUD Million)

Table 20: Western Australia, Construction Output Value (nominal, US$ Million)

Table 21: Tasmania, Construction Output Value (nominal, AUD Million)

Table 22: Tasmania, Construction Output Value (nominal, US$ Million)

Table 23: Northern Territory, Construction Output Value (nominal, AUD Million)

Table 24: Northern Territory, Construction Output Value (nominal, US$ Million)

Table 25: Australian Capital Territory, Construction Output Value (nominal, AUD Million)

Table 26: Australian Capital Territory, Construction Output Value (nominal, US$ Million)

Table 27: Australia, Key Contractors

Table 28: Australia, Key Consultants

Table 29: GlobalData Construction Market Definitions

Table 30: Construction Risk Index Ratings and Scores

List of Figures

List of Figures

Figure 1: Key Markets, Construction Output Growth Matrix and Risk Matrix

Figure 2: Australia, Construction Projects Pipeline by Sector (AUD Billion)

Figure ...

List of Figures

Figure 1: Key Markets, Construction Output Growth Matrix and Risk Matrix

Figure 2: Australia, Construction Projects Pipeline by Sector (AUD Billion)

Figure 3: Australia, Dwelling Permits Approved (Units)

Figure 4: Australia, Residential Property Price Index

Figure 5: Australia, Risk Profile

Figure 6: Australia, Risk Comparison

Figure 7: Australia, Construction Output Value (Real, US$ billion, 2017 prices and exchange rate)

Figure 8: Australia, Construction Output Value, Growth Matrix

Figure 9: Australia, Construction Output Value, by Sector (AUD Million), 2014–2023

Figure 10: Australia, Construction Projects Pipeline, Projected Annual Spending by Stage (AUD Billion), 2018–2023

Figure 11: Australia, Construction Projects Pipeline, Value by Stage (AUD Billion)

Figure 12: Australia Commercial Construction Output by Project Type (AUD Million), 2014–2023

Figure 13: Australia, Commercial Construction Projects Pipeline, Value by Stage (AUD Billion)

Figure 14: Australia, Commercial Construction Projects Pipeline, Projected Annual Spending by Stage (AUD Billion), 2018–2023

Figure 15: Australia, Industrial Construction Output by Project Type (AUD Million), 2014–2023

Figure 16: Australia, Industrial Construction Projects Pipeline, Value by Stage (AUD Billion)

Figure 17: Australia, Industrial Construction Projects Pipeline, Projected Annual Spending by Stage (AUD Billion), 2018–2023

Figure 18: Australia, Infrastructure Construction Output by Project Type (AUD Million), 2014–2023

Figure 19: Australia, Infrastructure Construction Projects Pipeline, Value by Stage (AUD Billion)

Figure 20: Australia, Infrastructure Construction Projects Pipeline, Projected Annual Spending by Stage (AUD Billion), 2018–2023

Figure 21: Australia, Energy and Utilities Construction Output by Project Type (AUD Million), 2014–2023

Figure 22: Australia, Energy and Utilities Construction Projects Pipeline, Value by Stage (AUD Billion)

Figure 23: Australia, Energy and Utilities Construction Projects Pipeline, Projected Annual Spending by Stage (AUD Billion), 2018–2023

Figure 24: Australia, Institutional Construction Output by Project Type (AUD Million), 2014–2023

Figure 25: Australia, Institutional Construction Projects Pipeline, Value by Stage (AUD Billion)

Figure 26: Australia, Institutional Construction Projects Pipeline, Projected Annual Spending by Stage (AUD Billion), 2018–2023

Figure 27: Australia, Residential Construction Output by Project Type (AUD Million), 2014–2023

Figure 28: Australia, Residential Construction Projects Pipeline, Value by Stage (AUD Billion)

Figure 29: Australia, Residential Construction Projects Pipeline, Projected Annual Spending by Stage (AUD Billion), 2018–2023

Figure 30: New South Wales, Construction Output Value, by Sector (AUD Million), 2014–2023

Figure 31: New South Wales, Dwelling Permits Approved (Units)

Figure 32: Sydney, Residential Property Price Index

Figure 33: Victoria, Construction Output Value, by Sector (AUD Million), 2014–2023

Figure 34: Victoria, Dwelling Permits Approved (Units)

Figure 35: Melbourne, Established Housing Prices Index

Figure 36: Queensland, Construction Output Value, by Sector (AUD Million), 2014–2023

Figure 37: Queensland, Dwelling Permits Approved (Units)

Figure 38: Brisbane, Established Housing Prices Index

Figure 39: South Australia, Construction Output Value, by Sector (AUD Million), 2014–2023

Figure 40: South Australia, Dwelling Permits Approved (Units)

Figure 41: Adelaide, Established House Price Index

Figure 42: Western Australia, Construction Output Value, by Sector (AUD Million), 2014–2023

Figure 43: Western Australia, Dwelling Permits Approved (Units)

Figure 44: Perth, Established House Price Index

Figure 45: Tasmania, Construction Output Value, by Sector (AUD Million), 2014–2023

Figure 46: Tasmania, Dwelling Permits Approved (Units)

Figure 47: Hobart, Established House Price Index

Figure 48: Northern Territory, Construction Output Value, by Sector (AUD Million), 2014–2023

Figure 49: Northern Territory, Dwelling Permits Approved (Units)

Figure 50: Darwin, Established Housing Price Index

Figure 51: Australian Capital Territory, Construction Output Value, by Sector (AUD Million), 2014–2023

Figure 52: Australian Capital Territory, Dwelling Permits Approved (Units)

Figure 53: Canberra, Established Housing Price Index

Figure 54: Australia, Headquarters of Key Contractors (% of Total Project Pipeline)

Figure 55: Australia, Headquarters of Foreign Contractors (% of Project Pipeline with Foreign Contractor)

Figure 56: Australia, Headquarters of Key Consultants (% of Total Project Pipeline)

Figure 57: Australia, Headquarters of Foreign Consultants (% of Project Pipeline with Foreign Consultants)

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