Construction disrupted
Construction work done disappointing for the March quarter, coming in flat at $74.4 billion.
The figures were perhaps a bit disrupted by Cyclone Alfred, and there was a slightly surprising decline in engineering construction activity in New South Wales and Queensland over the March quarter, possibly weather-related.
On the other hand, it looks like the residential construction cycle is gradually picking up, with construction work done for houses rising +6.6 per cent from the lull a year earlier, driven by a nascent boom in homebuilding in Western Australia.
For attached dwellings - units, apartments, duplexes, and townhouses - construction activity is generally picking up now, although there is a significant shortage of dwellings to be caught up.
Renovation activity has also strengthened of late as construction and materials costs have levelled out.
Looking ahead, residential construction should be strong for the next few years to address the significant shortage of dwellings, variously estimated to be between 200,000 and 300,000.
Capacity challenges will still be faced, with massive infrastructure requirements for the 2032 Olympics, and with growth in renewable projects (solar and wind farms) already having soared from $2 billion to $7 billion since the onset of COVID, to reach a record share of engineering construction activity.
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