Construction Market Movement Report - Q3, 2016
Cordell compiles the latest construction projects to deliver an overview of the health of the Australian construction industry.
For the September 2016 quarter, there was a signiﬁcant uplift in the number of projects entering construction observed by Cordell, where approximately 2,400 projects entered construction across the country. This is higher than the 1,900 projects observed entering the construction phase at the September 2015 quarter.
The most active segment of construction was in Civil Engineering, which saw 977 projects entering construction at a value of 2 billion. The largest value increases were in the apartment and unit construction segment, where the value of construction work was up $1.7 billion compared with Q3 2015.
Pipeline activity is also up on Q3 2016, with 6,014 new projects entering the pipeline compared with 5,988 in Q3 2015. As with the construction phase, civil engineering projects dominated the pipeline phase in Q3 2016 with 2,089 projects. While the number of new proposals increased, the value of new projects is down to $37 billion compared with $50 billion worth of proposals in Q3 2015.
Encouragingly, deferrals also fell compared with the September 2015 quarter, from 434 to 395 projects deferred. Values were signiﬁcantly down to $4 billion from $5 billion compared with Q3 2015.
The number of abandoned projects increased signiﬁcantly from 393 in Q3 2015 to 677 in Q3 2016, however the value of abandoned projects was far lower at just $3 billion as opposed to $10 billion. More than half the value of abandoned projects came from the apartment and unit segment.