Mining-related building and construction activity may have peaked, but levels of demand will remain elevated for many years to come, according to the Australian Construction Industry Forum (ACIF).
The ACIF Forecasts and Construction Market Reports show that while the rate of work has reached its highest point in recorded history, it will take 10 years for engineering construction demand to fall to a level that will still be double that of the work available 10 years ago.
The ACIF Forecasts show that it’s not just mining that is driving growth in this sector, but also large government infrastructure projects.
According to ACIF, changing demand in residential building will see the schism between Sydney and Melbourne grow. While New South Wales can look forward to a long-awaited, though moderate, improvement in demand for residential building, Victoria—Melbourne, in particular—will see a fall in demand.
In the medium term, New South Wales will experience a slight increase in activity across several sectors, says ACIF, while changes in social structure, cost of living and aspiration will see the development of apartments and townhouses become an important area of work, especially in Sydney.
Over the past few years, Melbourne has experienced a rate of residential work that is out of step with the rest of the country, says ACIF, and it will move into a cycle of flattening activity that brings it back into line with other states.
The ACIF Forecasts are available at www.acif.com.au. Construction Market Reports with detailed analysis and commentary for each state and territory are available now at www.acif.com.au/shop.
