Institutional construction is set for a sharp expansion in 2010, if the predictions of a new report by IBISWorld are correct.?
The sector, which incorporates healthcare, social, sporting, religious and legal buildings, is estimated to grow by 12 per cent in 2010 and to achieve $9.4 billion in revenue.?
“Activity in the educational building market has surged by about 40 per cent in the past two years, and will be bolstered in 2010 by projects arising from the Australian government’s economic stimulus plan — resulting in a 6.5 per cent boom in jobs,” IBISWorld general manager, Robert Bryant, said.
However, the news is not so good for those working on high-density housing projects. Multi-unit apartment and townhouse construction will contract sharply in the coming year, the report forecasts, with the sector shrinking by 5.2 per cent in 2010 to be worth $6.6 billion.
Employment within this sector is expected to drop by 3.9 per cent.??The report identifies reduced access to credit for developers, rising interest rates and a reduction in the first home buyers grant as main contributors to the downturn.
?On the whole, Australian businesses are set to fair well in the coming year, with GDP growth of 2.2 per cent projected.
