Resi construction slowed...except here

Construction headwinds

Engineering construction leaped by 6.9 per cent in the March quarter, driven by a huge $3½ billion increase in Western Australia (probably some of which will prove to relate to capital investment). 

Elsewhere, non-residential building work done was solid enough, but it seems very likely that public infrastructure works will continue to tail off from here. 

Residential construction work done surprisingly fell by -0.6 per cent in the March 2026 quarter, as new homebuilding slowed in all of the most populous states. 

There is one bright spot for residential construction, being for medium- and higher-density projects in Queensland.

Yes, this is partly in the city of Brisbane, but also in this cycle is much driven by the Gold Coast, Redcliffe and Moreton Bay, Caloundra and Maroochydore etc.

Steepling new dwelling construction costs remain a significant concern for developers. 

It also appears that many homeowners are also choosing to stay put rather than upgrade, reflected in rising renovation expenditure (up 3.7 per cent in the March 2026 quarter, and up by 9.4 per cent over the year).

---

1. Download our property buying guide

Download our free property buying guide here. 

You can also check out a few of our recent property purchases here. 

Get in contact with us today if strategic property investment is your thing. 

    2. Subscribe to our Top 10 Podcasts for Investors

Listen in to our podcasts

The Australian Property Podcast is rapidly becoming one of Australia's biggest business podcasts, now with over 50,000 audio downloads per month, and growing fast.

And our popular Low Rates High Returns Show also remains available on Spotify.

    3. Subscribe for my free daily blog

Subscribe for my free daily blog here. 

You can also catch up with me daily on Twitter here, where I'm far too active daily and have over 17k followers. 

By the way, I'm an 8-times published author on finance, investing, and business, so you can check out some of my books here. 

My new book, co-authored with Cate Bakos is available to buy here or on Amazon here - check out our free Buy Right podcast series here. 

4. Work with me privately

For a limited time you can book in a free diagnosis call with me here, so book in a call today.