DUBLIN–(BUSINESS WIRE)–The “Australia Construction Market Size, Trends and Forecasts by Sector – Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2022-2026” report has been added to ResearchAndMarkets.com’s offering.
The construction industry in Australia registered an annual growth of 1.8% in real terms last year, compared to a decline of 2.1% in 2020. The industry’s growth in 2021 was supported by an expansion in both building construction activities and civil engineering works.
Although the industry recorded growth last year, its output remained marginally below its pre-pandemic levels in 2019. Tightened restrictions, including the temporary suspension of construction activity and workforce capacity limits in Victoria and New South Wales (NSW), weighed on construction output last year.
The publisher expects the output of the Australian construction industry to surpass its pre-pandemic levels and expand by 4.3% in real terms this year, before stabilizing at an annual average growth rate of 2.8% from 2023 to 2026. The industry’s growth over the forecast period will be supported by the government’s continued focus on infrastructure investments to boost economic growth.
Forecast-period growth in the industry will also be supported by investments in the housing, renewable energy, manufacturing and healthcare sectors, in order to deliver on the election promises made by the incoming Prime Minister Anthony Albanese.
Some of the major promises announced by PM Albanese include establishing an AUD15 billion ($11.2 billion) National Reconstruction Fund, to develop the manufacturing sector, create jobs and drive regional development. The new government also aims to reduce carbon emissions by 43% by 2030, before reaching net zero emissions by 2050.
Despite regaining growth momentum, the industry’s output in the initial part of the forecast period will be affected by the rising costs of key construction materials, such as timber and steel. According to Master Builders Australia, the cost of constructing a new home rose by 20% in 2021.
Additionally, Russia’s invasion of Ukraine could further strain global supply chains and intensify Australia’s existing inflationary pressures. This will lead to increased project costs and may delay progress on projects currently under construction or in the later stages of pre-execution.
Furthermore, rising interest rates will increase the cost of borrowing, thereby weighing on new housing demand. The housing sector’s output in the coming quarters may be marginally affected by the former government’s decision to impose an additional tariff of 35% on imports from Russia and Belarus.
Although these countries account for a small portion of Australia’s timber imports, the tariffs will increase the price of laminated beams and other products used in home construction.
Scope
Reasons to Buy
Key Topics Covered:
1 Executive Summary
2 Construction Industry: At-a-Glance
3 Context
3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 COVID-19 Status
3.5 Risk Profile
4 Construction Outlook
4.1 All Construction
4.2 Commercial Construction
4.3 Industrial Construction
4.4 Infrastructure Construction
4.5 Energy and Utilities Construction
4.6 Institutional Construction
4.7 Residential Construction
5 Key Industry Participants
5.1 Contractors
5.2 Consultants
6 Construction Market Data
7 Appendix
For more information about this report visit https://www.researchandmarkets.com/r/qugkpo
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