Construction News Round-Up - June 2024
Australia & New Zealand Construction News
Building approvals in Australia at decade lows
The government’s new build targets are believed to be threatened by decade low building approvals, with only two states reporting an uplift in approval numbers.
Experts have attributed the disappointing figures to a lack of consumer confidence in investing and building, high interest rates, and cost of living pressures. While approval numbers decreased the value of approvals remained stable, indicating high construction costs.
Prepare for building inflation in Australia to surge again
A new Oxford Economics Report expects infrastructure costs in Australia will continue to rise due to high wages, increased materials and labour demands, as well as the transition to expensive, lower carbon technologies.
Other reports are predicting a 10 percent increase in non-mining infrastructure spending, which could inflate megaproject budgets over the next few years. States with large infrastructure projects, like Western Australia and Queensland, will be hit hardest by this cost escalation.
New housing targets in Victoria unveiled for the construction of 2.5m new homes by 2051
Jacinta Allen, premier of Victoria, has announced the state’s new target of building 2.5 million homes by 2051. Geelong, the City of Melbourne, and Melton are set to more than double each of their housing capacities with the majority of builds being focused in these areas.
New builds will be split 70/30, 70% will be built in established areas and 30% in outer-suburban, developing areas. The new build targets, part of Plan Victoria, will supersede the existing Plan Melbourne strategy.
Fears construction jobs could go as Kāinga Ora pauses thousands of homes
The biggest home builder in New Zealand, Kāinga Ora has paused the construction of over 3,000 consented homes while a new company board strategises how to turn the company around.
Kāinga Ora provides 80% of New Zealand’s social housing and is now looking to the Government to provide funding to secure the certainty of its current and future stock. Industry experts warn tradies could be put out of business due to the move.
United Kingdom & Ireland Construction News
General Election 2024: What each party promise means for UK construction
The UK general election has been called for 4th July 2024, with each major party campaigning their cause - including a number of promises affecting the construction industry. Each major party has committed to building hundreds of thousands of new homes each year.
The Conservative, Labour, Liberal Democrat and Greens manifestos also include promises affecting construction around infrastructure, energy, and the general economy.
UK construction activity growth hits two-year high
Recent data has shown that construction activity in the UK has hit a two-year high. Last month, all three major sectors of the construction industry experienced positive growth for the first time since 2022.
Other positive signs are a continued uplift in new orders, rise in job creation, improvements in supply chain conditions, as well as the availability of subcontractors.
Whilst market trends are showing strong signs of growth and stability, experts are warning the industry to remain conservative about expectations due to ongoing market volatility and high interest rates.
Ireland construction levels off in May, employment up for sixth month running
Construction activity in Ireland decreased slightly last month, following two months of uplift. Housing and commercial markets still reported increases in activity, as did new orders. While job creation stagnated, staffing levels increased for the sixth month in a row.
Office construction in Dublin has particularly driven activity, with more space being delivered in Q1 of 2024 than in the whole of last year. Overall, Irish construction firms are reporting a much more positive outlook on future capacity and projects.
Clea Boyd-Eedle