Construction in Australia - Key Trends and Opportunities to 2018 - New Market Research Report

From: Fast Market Research, Inc.
Published: Fri Jun 06 2014

The Australian construction industry registered a compound annual growth rate (CAGR) of 5.24% during the review period (2009-2013). Growth was supported by private and public investments in infrastructure, industrial and residential construction projects. Government infrastructure programs such as the Nation Building Program and the National Broadband Network supported the growth. Industry growth is expected to continue over the forecast period (2014-2018) as a result of the government's commitment to making infrastructural improvements. Consequently, industry output is expected to record a forecast-period CAGR of 4.65%.

Report Highlights

* Since late 2012, construction activity in Australia has been fairly weak, with the industry posting a contraction of 0.2% in real value-added terms in 2013. This followed an annual average growth of 6.8% in real terms in 2011-2012. However, potential growth has emerged in the form of the total building permits for dwelling units reaching 51,417 in the fourth quarter of 2013, a growth of 23.2% over the fourth quarter of 2012. Permits for houses rose by 14.7%, whereas permits (excluding houses) grew by 33.8% during the same period. The forecast-period outlook for construction in Australia remains positive due to low interest and unemployment rates and improvements in consumer and investor confidence.
* The government's focus on road and rail infrastructure development is expected to support economic growth and improve regional connectivity. In its 2013-2014 budget, the government allocated AUD24.0 billion (US$23.3 billion) under the Nation Building Program to expand the country's road, rail and port infrastructure by 2018-2019.
* According to the Australian Bureau of Statistics (ABS), the seasonally adjusted number of permits for total dwelling and non-residential units combined in February 2014 measured 16,669, an increase of 23.2% compared with February 2013. According to the Commonwealth Bank of Australia, the supply of new housing units per year is 154,000, whereas the country needs around 170,000 units, based on an average population growth of 1.6% a year. Over the forecast period, growth in the residential market will be driven by the need to balance housing unit demand and supply.
* The Reserve Bank of Australia cut its policy interest rate to a record low of 2.5% in September 2013, a level at which it has remained. This helped to support an improvement in business confidence across various sectors, which is expected to contribute to demand for office buildings. Moreover, the higher yield on asset prices, better leasing conditions and the recovery of the Australian real estate investment trust has helped attract investors to purchase office buildings. As a result, the office buildings category is expected to expand over the forecast period.

Full Report Details at

About Fast Market Research

Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff is always available to help you find the right research to fit your requirements and your budget.

For more information about these or related research reports, please visit our website at or call us at 1.800.844.8156.

You may also be interested in these related reports:

- Construction in France - Key Trends and Opportunities to 2018
- Construction in the Netherlands - Key Trends and Opportunities to 2018
- Construction in Bahrain - Key Trends and Opportunities to 2018
- Construction in Denmark - Key Trends and Opportunities to 2018
- Construction in Hungary - Key Trends and Opportunities to 2018

Company: Fast Market Research, Inc.
Contact Name: Bill Thompson
Contact Email:
Contact Phone: 1-413-485-7001

Visit website »