Q1 2024 Oceania Market Construction Update [Canberra]: The ACT construction market in 2024 is expected to be a roller coaster ride.
The ACT construction market in 2024 is expected to be a ride on a roller coaster. Residential building approvals fell during 2023. This points towards slowing activity in house construction. Non-residential approvals grew sharply in 2023 and strong activity within the sector will continue into 2024. Infrastructure projects are also likely to see steady progress due to ongoing government investment.
However, significant headwinds threaten this positive outlook. Construction costs, particularly for materials, are projected to remain high, impacting profitability for builders. The ongoing skilled labour shortage could further exacerbate this by causing delays and potentially raising construction costs. Additionally, recent interest rate hikes may dampen buyer and developer confidence, leading to a potential slowdown in new residential projects.
Overall, the ACT construction market in 2024 is forecast to be active but with significant challenges. The industry’s ability to navigate rising costs, labour shortages, and potential shifts in buyer demand will be crucial in determining the year’s outcome.
Photo: RLB Award for Best Public Art Project 2024 Finalist: Field of Light, Canberra. Hindmarsh Construction Australia Pty Ltd (Commissioned by) Matthew Curtis (Artist).
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