Chapter 9 Australia & New Zealand
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1 Chapter Australia & New Zealand
2 Contents Australia & New Zealand Australia Market Review 3 Australia Key Statistics 3 Value of Construction Output (AUD$); Australia 4 Trend in Australian Construction Output by Sector Building Cost Index by Capital City 5 Building Cost Index & Consumer Price Comparison 6 Dwelling Unit Approvals 6 Average Construction Costs 2016 Australia 7 List of Tier 1, 2 & 3 Contractors 8 Currency Exchange Rates 8 New Zealand Market Review New Zealand Key Statistics Value of Construction Output (NZ$m ) 10 All Building Work by area; New Zealand 10 Numbers Employed in Construction (000s) Dwelling Unit Commencements 11 Average Construction Costs New Zealand 12 Currency Exchange Rates (NZD$) 12 Contributors to the Australia and New Zealand section of Knowledge Centre 2016: John Carleton, Brian Collins, Seamus Fitzmaurice 2
3 Australia Market Review Overall construction activity increased in 2015 by approximately 1% which has left the Australian construction industry cautiously optimistic that this trend can be repeated in Any hopes for more significant gains have been tempered by the sharp decline in resource sector investment during The collapse of commodity prices dealt a further blow to the industry and as a result mining activity is expected to weaken further in the next 12 months. Queensland, Western Australia and the Northern Territory will continue to be most affected by this decline. A resurgence in commercial and residential building activity has proven to be a timely respite from the mining industry s woes. Activity in these sectors is predicted to remain buoyant throughout 2016, fuelled mainly by continued population growth, historically low mortgage rates and overseas investment. The cities of Sydney, Brisbane and Melbourne are benefiting most from this increase in activity. The record number of building approvals in the past year demonstrates a continued demand in the residential market. Engineering construction projects are also due to play their role in maintaining overall construction at current levels. The growth of major urban transport infrastructure (rail and road) and telecommunications infrastructure through the ongoing roll out of Australia s new broadband network are expected to contribute the most. A resurgence in commercial and residential building activity has proven to be a timely respite from the mining industries woes. Construction prices remained competitive throughout It is notable that due to the increased demand in the residential and commercial sectors, some key trades are experiencing higher tender price escalation than that of the wider industry. Consequently it is expected that tender prices will increase by 3.0% in 2016 as contractors continue to operate with healthy order books. Australia Key Statistics 3
4 Value of Construction Output (AUD$); Australia Trend in Australian Construction Output by Sector
5 Building Cost Index by Capital City 5
6 Building Cost Index & Consumer Price Comparison Dwelling Unit Approvals 6
7 Average Construction Costs 2016 Australia 7
8 List of Tier 1, 2 & 3 Contractors Currency Exchange Rates 8
9 New Zealand Market Review 2015 was a solid year for New Zealand s economy with a 2.3% increase in economic activity recorded in the first three quarters of the year. Auckland and Christchurch continue to grab the headlines in relation to construction. Of the total value of building work carried out during 2015, approximately 60% came from these two regions. Activity is driven by demand for residential housing, ongoing earthquake repairs and sustained population growth. construction is one of the largest sectors generating approximately $16 billion of gross revenues annually. that Auckland requires 10,000 houses per year for the next three decades to resolve the current housing shortages. House prices grew in excess of 10% during 2015, which will further fuel investment in this sector. In the South Island, the Christchurch and Canterbury region rebuild is still the focus of construction work. Overall, construction is one of the largest sectors in the New Zealand economy, generating approximately $16 billion of gross revenues annually. The construction industry accounts for 7% of the workforce, employing on average 171,000 people annually. However, it is worth noting that as of 2015, manufacturing has overtaken construction as the main source of employment in the country. In the North Island, Auckland is benefiting from the sustained demand for residential properties. It is estimated The current outlook for the New Zealand construction industry remains positive for New Zealand Key Statistics
10 Value of Construction Output (NZ$m ) All Building Work by area; New Zealand 10
11 Numbers Employed in Construction (000s) Dwelling Unit Commencements 11
12 Average Construction Costs New Zealand Currency Exchange Rates (NZD$) 12
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