Brisbane construction market is tipped to have the quickest recovery, driven by a strong pipeline of pre-existing projects like Queen’s Wharf, and the Cross River Rail station developments.
Supported by its pre-existing pipeline of major projects under way and yet to start, global consultancy firm Turner & Townsend’s insight market report found that Brisbane’s construction market is forecast to have the quickest recovery, followed by Sydney, Melbourne, Perth and then Adelaide.
“Queensland has a robust pre-existing pipeline of major projects committed, which should help to uphold construction activity in the interim,” Turner & Townsend director Simon Kearney said.
This includes Queen’s Wharf, the Cross River Rail station developments, 360 Queens Street Office Tower, and Logan and Caboolture Hospital redevelopments.
The insight report for the fourth quarter of last year highlights the “road to recovery” for Australia’s construction markets. It notes the outlook for Australia’s construction markets is positive across all capital cities.
While construction activity is expected to be subdued over 2021, an improvement is anticipated from 2022 onwards.
Kearney says all construction markets are forecast to see an increase in non-residential construction activity between 2022 and 2024, driven by a solid pipeline of major public sector projects and the recovery of private sector investment forecast to begin in the second half of this year.
“Tendering conditions are extremely competitive right now and the focus is on public sector projects such as schools, hospitals and defence, while there are limited private sector projects out for tender,” the report notes.
“We expect this competitive market to continue over the first half of 2021, or until private-sector construction, activity starts to pick up in each market.”