Cordell compiles the latest construction projects to deliver an overview of the health of the Australian construction industry.
For the December 2016 quarter, Cordell captured approximately 2,212 projects moving into construction. Comparing Q4 2016 to Q4 2015, there was only a 6% increase in pipeline activity, and a 40% decrease in construction. Declines were particularly prominent in the commercial and industrial segments.
The quarter-on-quarter results were more promising. In the quarter on quarter results, we see a rebound of health in the construction industry, with Q4 2016 pipeline activity increasing 18% in value, and construction activity increasing 41% in value.
The most active segment of construction was Civil Engineering, with 922 projects entering construction at a value of $3.13 billion in Q4 2016.
The highest value of construction work, and highest increase in value between Q4 2016 and Q4 2015, was in mining. Combined values of mining construction was $4.88 billion, up $1.41 billion from Q4 2015.
Deferrals were up 12% across the board when comparing values in Q4 2016 with Q4 2015, however the quarterly comparison showed an encouraging decrease in deferrals of 28% between Q4 2016 and Q3 2016.
The value of abandoned projects across the country fell from $1.42 billion in Q4 2015 to $1.10 billion in Q4 2016. 49% of the value of abandoned projects across the country was in the apartment and unit segment.