The short-term forecast for the Australian construction market for November 2012-January 2013 shows $17.3 billion in total construction starts. In contrast, the previous three months, August- October 2012, was $15 billion. This is an increase of sixteen per cent.
The long-term trend shows total construction starts in Australia at -5% (when contrasting the value of 12 months’ construction starts against the corresponding 12-month period a year earlier).
In October 2012, the construction market continued to struggle with scarce signs of any increase in activity since the Reserve Bank’s decision to lower interest rates.
Damian Eastman, COO of BCI Media Group, said, “While supply pressures continue to build in many sectors of the market, it is highly unlikely there will be a sustainable increase in building construction in the short term.”
BCI Media Group’s analysis of current project information shows the short-term forecast for both the Commercial and Retail sectors is ahead by three per cent. In particular, the Retail sector is showing improved activity with the long-term trend indicating double-digit growth (year-on-year).
“Unlike other construction sectors, retail construction has shown little fall off in activity as large, multi-national companies with ready access to finance, have continued to build as they fight for market share in the competitive retail environment,” Damian said.
