The Australian construction industry demonstrates a cautiously optimistic perspective as of April 2025. A sustained and steady flow of construction projects across most regions keeps activity robust, especially for publicly funded projects. Additional positive factors include the first RBA rate cut since November 2020, which alleviates financing costs for both developers and buyers. The stabilisation of various material supply costs has fostered greater certainty and confidence in building expenses. The Australian Construction Industry Forum forecasts a modest growth of only 0.9 percent for the construction sector in 2025.

The biggest talking point in the construction industry in the past quarter were the revelations in ABC’s investigation into outlaw motorcycle gangs infiltration within the construction arm of the CFMEU and the subsequent decision by the government to place all branches of the construction arm of the CFMEU into administration with immediate effect.

We are now at the mid-point of 2024 and it is clear that the single biggest challenge facing the industry at present is a lack of skilled labour in tandem with low productivity levels. Build Skills Australia estimates that Australia needs 90,000 new tradesmen to meet current national housing commitments. It is unlikely that such a significant number of people will come from within our borders and therefore migration will need to play a key role in order to achieve this target.

As we settle into 2024, it is clear that the single biggest challenge facing the industry at present is a lack of skilled labour. The industry needs to find new ways of enticing people into the industry and providing them with adequate training to enable them to prosper in their careers. An extreme lack of female workers in the construction trade cannot be ignored any longer and further steps must be taken to improve the current situation.

As we move into the final quarter of 2023 many on-going challenges remain in the construction sector throughout Australia including a significant lack of skilled labour availability, increasing fuel costs, contractor insolvencies and historically high interest rates. Download for our full October 2023 Market Insight.

Our July 2023 Market Update report provides insights into the current state of play in the Australian Construction Market, with a particular focus on cost movements and activity levels. For full, comprehensive pricing including up to date Estimating Rates, Detailed Prices, Building Indices and Building Price Indexes, purchase a 2023 Handbook or Cost Guide. Subscribers of current editions receive three detailed pricing updates in April, July and October each year.

Welcome to our April 2023 Quarterly Update report for the Australian Construction Market. This report provides insights into the current state of play in the Australian Construction Market with a particular focus on cost movements and activity levels. Please click below for the report.