The short-term forecast for the Australian construction market for March-May 2013 shows $15.6 billion in total construction starts. In contrast, the previous three months, December 2012-February 2013, was $16.2 billion. This is a decrease of four per cent.
The long-term trend shows total construction starts in Australia at negative three per cent (when contrasting the value of 12 months’ construction starts against the corresponding 12- month period a year earlier).
The review reveals a continuing downward trend over the next three months for the Australian building and construction market, led by a sharper fall in constructions starts in the infrastructure sector.
The forecast suggests there is unlikely to be any major improvement in the construction sector over the next twelve months as the high Australian Dollar, tight company budgets, and tough bank lending criteria continue to squeeze the market.
Whilst there are some signs of activity in the commercial and residential sectors, the overall building construction market continues to track sideways.
On a state level, growth can be seen in New South Wales and Queensland; although Queensland’s market remains nearly twenty per cent below where it was three years ago.
The fall in civil construction starts continued to gather speed. Damian Eastman, COO of BCI Media Group, said, “While there is anecdotal evidence of a drop in pricing on new jobs in the market, it remains to be seen if this will lead to a pick up in jobs going forward”.
