News dalla rete ITA

7 Marzo 2018



Commercial construction will surge this year on the back of new retail work, offsetting the weak residential and engineering sectors and halting a three-year decline in total-building activity, according to a report conducted by Master Builders Australia. Non-residential work supporting the arrival of new retail entrants such as Amazon and the expansion of operators Costco and Aldi would account for $6.9 billion of the $41.7 billion-worth of work to be done in the year to June, marking a 14.6 per cent leap from last year. Office-related construction work – concentrated in Sydney and Melbourne – would account for another $6.8 billion. Tourism-related work, such as the $750 million Dusit Thani Brookwater Golf and Spa resort in Brisbane, and tertiary education work, such as the $247 million Health Innovations Building at the University of SA, are also part of a strong pipeline of work. The report by MBA highlights the strength of the next pivot under way in Australia’s construction industry as developer appetite for new residential work weakens. The burst in commercial work that will prompt a 0.9 per cent in total construction this year to $192.3 billion will be short-lived. While commercial work will only slip 1.4 per cent next year and infrastructure-driven engineering work will see that sector pick up 3.3 per cent next financial year, a sharp drop in residential construction next year will pull total work done back into contraction. However, renovations are likely to remain a ‘bright spot’. Driven primarily by cheap credit and healthy price growth, an increasing number of home-owners are choosing to reinvest in their home as a means of capturing greater value. Transport-related work coming on stream looks to be small compared with large resources-related projects that have been ending over the past few years, but they are spread out and could provide ongoing stimulus through maintenance and upkeep. Nationally, there are more than 20 transport-related projects worth in excess of $2 billion either being built or in the pipeline around the country. So despite the big projects in the major capitals hogging the headlines, transport investment is relatively well spread. (ICE SYDNEY)