Construction levels hit record highs across Australia

By |

Investors should focus their attention on South Australia, Western Australia and Queensland following new data that shows construction levels reached record highs in the September quarter.

Building work to be done in SA is a staggering 43% higher than a year ago, according to Craig James, chief economist at CommSec. James said the amount of construction work undertaken had increased dramatically across most states, underpinned by strong activity in the engineering sector.

"Rumours of the death of the economy are highly exaggerated. Not only did construction work hit record highs in the latest quarter, but the amount of work still to be done is over 20% higher than a year ago," said James.

"The good news is that activity posted solid gains across all states, even in the beleaguered economy of New South Wales. Queensland is clearly the construction powerhouse, but SA has the strongest prospects for 2009."

The construction sector will continue to drive the economy over the coming year, which James said would "insulate Australia from the gloom offshore".

"There is a near record amount of residential and commercial building projects to be completed, and new approvals soared by an additional 10% in the past quarter alone," he said.

"While not all these approvals will go ahead, construction and engineering companies still remain flush with work for the majority of 2009."

However, James added that cost pressures remained the key issue for the construction industry.

"Construction costs rose by 7.5% over the year - the strongest growth in almost eight years," he noted.


Can you afford to buy in this suburb? Find out how much you can borrow

Top Suburbs : newtown , flemington , springwood , campsie , midland

go back

Get help with your investment property

Do you need help finding the right loan for your investment?

When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus and appointment is free.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here