According to CoreLogic, the country’s construction industry is alive and well despite the six per cent drop on the number of commercial projects reported for the month of September from August 2018.
“Whilst the number of projects is trending down on a monthly, quarterly and annual basis, it’s important to note that from a value perspective, year-on-year projects shifting to construction phase have increased by 20% and month-on-month results show a rise of 51%,” said James Shang, a commercial analyst from CoreLogic.
CoreLogic’s report shows that Australia’s construction pipeline is strong with 1,926 new construction projects last September, and the value of new commercial construction projects for that month alone reached AU$32bn.
This is the highest monthly figure since July 2013.
“We expect that this level of activity in the commercial development sector will put continued upward pressure on the cost of construction, even though the residential market is softening and data from Australian Bureau of Statistics indicates the residential construction boom is moving through a historic peak,” said Shang.
Experts from CoreLogic said that this increase is because of the significant project happening in this quarter such as the construction of Shell’s floating liquefied natural gas refinery ($2bn) and Melbourne’s second metro tunnel ($23bn).
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