Infrastructure projects continue to dominate new project work in both quantity and value, according to the latest Cordell Construction Report released by CoreLogic for November 2018.
The number of new projects entering Australia’s construction work pipeline stood at 2,210 – marginally below the yearly high of 2,292 recorded in October 2018. The combined worth of new projects in November totalled up to $25bn – nearly double the 3-year median value.
“Although the total estimated value of new projects is approximately 16 percent lower than the yearly high, it’s a strong indicator of continued strength in construction applications,” says James Shang, CoreLogic commercial research analyst.
Though new projects saw infrastructure work dominating in both quantity and value, apartments and units came a close second in quantity.
One project in particular stands out for its ability to be a game-changer in the current scenario – the Aerotropolis infrastructure project in Western Sydney has an estimated cost of $8bn, accounts for 50 percent of the total new project applications in NSW for November, and is expected to create 200,000 new jobs.
However, the number of projects further down the pipeline and actually moving into construction has fallen for a third consecutive month, which is attributed to a tightening credit environment.
Civil engineering projects accounted for 52 percent of those moving into construction phase, while 54 percent of value for projects moving into construction was thanks to the commercial sector.
The full report can be accessed on the CoreLogic website.