With a combination of a growing population, urbanisation and permanent inward immigration, Australia’s construction demand is forecasted to welcome significant growth over the coming years. This is also largely fuelled by China and Australia’s strong partnership in the construction industry.

Australia is China’s fifth-largest import supplier and tenth-largest export client, making it the country’s sixth-largest trade partner. Australia buys 25% of its manufactured goods from China, while it sends 13% of its thermal coal to the country.

Australia’s Construction Labour Update

How will Australia’s construction industry look this 2023?

Since the beginning of 2021, the total number of workers across all industries has climbed by 5.5%. In contrast, the building and construction sector acquired just 0.3%. While this was happening, the value of construction operations increased by more than 4.7%. Labour shortage remains to be a challenge for the construction industry.

Australia is experiencing its worst tradie shortage in decades, with pricing and demand putting further strain on the building and construction sector. The most severe shortages are in bricklaying, carpentry, and roofing. The labour scarcity and demand for construction workers for project developments is projected to last until 2023.

Building and Construction Costs in Australia May Ease in 2023

Melbourne’s building and construction cost inflation is forecasted to be cut in half—from 8% this year to 4% in 2023. On the other hand, Sydney’s will decline from 6.9% to 3.9%.

The Gold Coast is expected to have an even more significant dip as cost growth falls from 11.5% to 5.5%. Similar outlook and predictions were made for Brisbane, where it is likely to decline from 10.5% this year to 5.1% in 2023.

Contact Us For Your Building and Construction Perth Needs

If you have a commercial construction or industrial project you’d like to discuss, just call 0403 464 064 for a free quote or contact us here.