Published By : 04 Nov 2015 | Published By : QYRESEARCH
Even after an overwhelming slowdown of the economy, Australia seems to be on the cusp of hyper activity in the construction sector in the coming financial year with roads, apartments, and rail projects fueling the latest infrastructure boom. A recent construction outlook survey has revealed this insight.
The upcoming construction boom will reportedly become the legacy of Tony Abbott, the infrastructure prime minister whose budgets have been earmarking massive modernization projects for major roads.
Executive director of Australian Constructors Association Lindsay LeCompte said that the outlook reflects a rising confidence in the construction industry and its recovery from the slowdown in resources.
The lobby groups’ outlook report also forecasts that the period of 2016- 2017 will be the best in four years for construction after the resources slump set in. An increasing number of construction firms are anticipating an average growth of 4.70 per cent in the coming year.
The outlook reveals that there will be a vibrant growth in the development of multi-level apartments that are in the same category as high apartment building approvals in Melbourne, Sydney, and Brisbane. While the growth rate was a 13.70 per cent during the 2015-2016 period, growth in 2016-2017 will be at 8.10 per cent, according to reports by Sourceable.
Engineering construction is anticipated to face a rather mellow growth; it is likely to drop from the 5.20 per cent growth rate in 2015-2016. However, big ticket rail and road projects such as the Victoria’s East West Link project and Sydney’s WestConnex project are likely to boost engineering construction at a 4.80 per cent growth rate in the next financial year, the survey revealed.
Chief executive officer at Australian Industry Group Innes Willox said that the construction outlook seems to be balanced and this proves to be great news for the economy as a whole.