Victoria Continues to Lead the Construction Pipeline
CoreLogic construction figures for July, compiled by commercial research analyst Eliza Owen, estimate that the value of construction entering the pipeline in July was $21.7 billion. This is 18% lower than the previous month, however, it is still well above the 12 month average of $14.6 billion per month.
As with June, the high construction value of new pipeline projects in July was largely due to a single, civil engineering project in Victoria. In June, it was an $8 billion wind farm proposed off the coast of Gippsland. This month, it is a $7 billion airport proposal near Koo Wee Rup, south-east of Melbourne. Thus in two projects alone, Victoria has seen a prospective $15 billion worth of construction in the past two months.
According to Eliza Owen, the July results place Victoria at the top of the pipeline values chain with $12.4 billion worth of construction proposals, making up 57% of total new construction values across Australia.
She said, “The pipeline values being added to potential construction in Victoria are extraordinary. For almost 3 years, New South Wales has outperformed construction growth in Victoria, and led growth in pipeline values. The last two months truly show a shift in the distribution of capital in Australia’s construction industry.”