Construction industry in Australia - statistics & facts
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The construction industry is a key contributor to the Australian economy, employing over one million people across various construction sectors. In 2022, Australia’s construction industry reported a gross value added (GVA) of around 156 billion Australian dollars, with the industry’s GVA standing at about 120 billion as of September 2023. With an increasing population comes the need for more housing, commercial buildings, social spaces, and infrastructure. Construction activities for residential, non-residential, and infrastructure projects vary across the country's states and territories, with New South Wales, Victoria, and Queensland being the country's housing construction hotspots. While the continued construction and maintenance of buildings and infrastructure across Australia is vital, the industry faces several obstacles, from fluctuating material and project costs to skilled worker shortages and a falling labor productivity index (LPI).
While residential building activity was subdued, construction in the non-residential segment, including commercial buildings such as offices, retail outlets, and industrial facilities, remained relatively stable. Recent investments focused primarily on schools, hospitals, and warehouses. The value of construction work on warehouses in Australia amounted to over six billion Australian dollars in 2023, with growing demand attributable to the pandemic-induced e-commerce boom.
Residential vs. non-residential construction
The value of residential construction work completed across Australia amounted to around 30 billion Australian dollars higher than that of non-residential construction work in 2023. Sector-wise, the value of construction work in the private sector was significantly higher than in the public sector. While Australia’s residential housing stock increased in 2023, construction work slowed, and new dwelling commencements and approvals fell. Despite the government's goal of providing a sufficient housing supply for its population, new home commencements were forecasted to fall in 2024, worsening Australia’s housing stock and population growth disparity.While residential building activity was subdued, construction in the non-residential segment, including commercial buildings such as offices, retail outlets, and industrial facilities, remained relatively stable. Recent investments focused primarily on schools, hospitals, and warehouses. The value of construction work on warehouses in Australia amounted to over six billion Australian dollars in 2023, with growing demand attributable to the pandemic-induced e-commerce boom.
