Q4 2023 Australia Report [Hobart]: Construction activity continues to remain at very high levels supported by Government works, particularly in the civil sector.
This creates a major challenge to private sector activity with many projects being held off until market realisations increase to match construction prices. This, in turn, is creating a large volume of works building up which augers well for the long-term health of the local construction industry.
It is apparent that the major financial beneficiaries are at the subcontractor level with the main builders retaining only reasonable levels of profit. Traditionally this situation has been mitigated by Eastern Seaboard subcontractors temporarily moving down to fill the gaps in the local market however this is not currently the case due to high levels of activity on the mainland.
Whilst the dramatic increases in the Tender Price Index of recent years have now abated there is evidence that prices will continue to rise at a steady rate across the medium term.
Museum of Old and New Art (MONA), Hobart
There is evidence that prices will continue to rise at a steady rate across the medium term.
Photo: Museum of Old and New Art (MONA)
FURTHER INFORMATION:
