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.”