Leading property analysist, CoreLogic, have released the latest edition of their ‘Cordell Construction Monthly’ which states that 2,210 projects entered Australia’s construction work pipeline in November – with a combined worth of $25 billion being almost double the 3-year medium value.
In commenting on the findings, CoreLogic commercial research analyst, James Shang, said that the number of new construction projects entering Australia’s pipeline was just below the yearly high of 2,292 which was recorded in October.
“Although the total estimated value of new projects is approximately 16 per cent lower than the yearly high, it’s a strong indicator of continued strength in construction applications,” he stated.
According to the report, infrastructure projects continued to dominate new project work in both quantity and value over November, although apartments and units followed close behind for quantities of projects.
The report also states that stand-out infrastructure project is the Aerotropolis project in Western Sydney. Described as a ‘game-changer’, the project has an estimated cost of $8 billion, accounts for 50 per cent of the total new project applications in NSW for November and is expected to create 200,000 new jobs.
Whilst the number of new project applications is strong, the picture for projects further down the pipeline and moving into construction was seen to be less positive. These projects have fallen for a third consecutive month: the impact from a tightening credit environment clearly extending beyond the residential market.
“The estimated value of projects shifting into the construction stage during November was just over $2 billion. Whilst this figure is 53 per cent higher than the recent low (in October), it’s actually low when you factor in the strong level of activity in new development applications and when compared to historic levels too,” Mr Shang explains.
Lastly, civil engineering projects accounted for 52 per cent of projects moving into the construction phase, whilst 54 per cent of value for projects moving into construction was thanks to the commercial sector. Mining held the highest median project value at $4.15 million.
The full ‘Cordell Construction Monthly’ can be accessed online here.