NSW takes top spot on construction league table

NSW takes top spot on construction league table
NSW takes top spot on construction league table

New South Wales has taken top spot in a new report by real estate forecaster Australian Construction Insights (ACI).

The summer 2015 edition of the ACI Construction Monitor provides analysis and insights into conditions within Australia's non-residential building and engineering construction sectors.

“In terms of geography, the Construction Monitor’s state rankings show New South Wales has finally taken out top spot," said Geordan Murray, the economist who worked on the report.

In the Construction Monitor rankings NSW has been held out of top spot...until now. After a series of seconds and thirds, the latest analysis shows NSW has finally reached the top of the table, narrowly edging out Victoria which holds down second spot ahead of the Northern Territory.

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NSW takes top spot on construction league table

 

"The recent performance of the state’s residential building sector has been has been well documented, however, the resurgence of the state’s non-residential construction sectors have not attracted the same level of attention,” Murray added.

Despite the overall top spot, NSW ranked second to Victoria for best performing jurisdiction in non-residential building, and was runner-up to the Northern Territory for best performing jurisdiction in engineering construction. 

Beyond the top three, there is a reasonably large gap to Tasmania and Western Australia in fourth and fifth places, respectively. South Australia and the Australian Capital Territory are a little further off the pace holding down sixth and seventh, while Queensland has dropped into last place.

“The gradual winding down of construction work related to the expansion of mining operations over the last few years is the most pervading factor affecting the overall level of non-residential and engineering construction activity nationally,” Murray said.

“Our forecasts show this is likely to remain the overarching dynamic for the next few years.”

“However, the large scale of the change in mining related work is concealing the countless variations in conditions affecting all the other segments of non-residential building and engineering construction.

“In an aggregate sense, falling expenditure on non-residential construction will be a weight in the saddlebag for Australia’s economic growth, lasting as long as it takes for mining sector expenditure to normalise.

Murray said the forecast showed growth in total non-residential construction is expected to return in 2017/18, but it does not need to take that long.

"If we see more favourable currency conditions and interest rates remaining low, we could see investment in non-residential construction make a positive contribution to economic growth sooner,” he concluded. 

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NSW takes top spot on construction league table

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Construction Development

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