Social Housing Projects Gives Residential Construction a Boost in August
Over August, the construction pipeline continued to be dominated by civil engineering projects over residential projects according to the CoreLogic Construction Monthly Report. However, CoreLogic commercial analyst Eliza Owen noted that August was an unusually high month for apartment and unit commencements, rebounding from a low June quarter.
She said, “We saw the total value of new development applications in the pipeline over August recording an estimated $17.5 billion dollars. This is 19% lower than July, when the proposal for a $7 billion airport in Victoria pushed the construction value of new pipeline projects to $21.7 billion.”
“Of the new pipeline applications coming in across Australia, 42% of the total construction value came from civil engineering projects, while 36% came from apartments and units,” she said.
In the apartment and unit space, the median project construction value among development applications was $1.4 million, making it the highest median project value across the construction segments in the pipeline.”
In terms of commencing projects across Australia, there was $5.6 billion worth of construction commencing in August. Of the value of commencing projects, 46% were in the apartment and unit space. According to Eliza Owen this is well above the 6 month average share of construction commencements, for which residential projects typically held a 31% share of commencements.
She said, “The surge is partially due to the contract being let on a $1.5 billion residential housing estate in the Ryde council of New South Wales. The project, known as the Ivanhoe Estate at Macquarie Park, is expected to be completed in 2027. The site will be developed with more than 3,000 units, including at least 950 social housing units and 128 affordable rental units.”
Renewable energy continues to prove a short-term area of fast growth for the construction industry, with early planning continuing for the Aurora Solar Energy Project near port Augusta. Meanwhile, construction has commenced in Queensland on a mining project worth over $35 million. The project is a bauxite mine located 35 km north of Mapoon, and will have an expected mine life of 15 years.