Post Tagged with: "Australian Construction"

Why Demand for Construction Supplies Remain Steady in Australia

Sydney Australia city viewDemand for construction essentials ranging from nut and bolt suppliers to concrete products remain stable in Australia, thanks to the steady flow of work in the commercial and retail sectors.

Based on the Rider Levett Bucknall’s (RLB) Crane Index, there were 684 cranes at work across the country in April. The index based the number of cranes in use as an indicator of construction activity.

Industry leaders

Non-residential construction has offset a decline in the number of cranes for residential projects. So far, in the second quarter, the RLB index recorded a 42% increase in cranes for commercial and retail projects.

This countered a 10% decline in residential cranes nationwide. Sydney accounted for a majority of the cranes with 346 in use, followed by nearly 160 cranes in Melbourne. Brisbane and the Gold Coast have 67 and 23 cranes, respectively, while Canberra and Perth have a combined 50. The rest are located in Adelaide, Hobart, Newcastle and the Sunshine Coast.

Sydney apartment boom

An apartment building boom in Sydney explains why most of the cranes at work are in the city, despite the broader decline in residential construction in other parts of Australia. CoreLogic’s analysis of data from the Australian Bureau of Statistics showed that there are more than 16,700 approved projects in New South Wales.

These projects likely broke ground after being approved in the last quarter of 2017. The additional supply would benefit home buyers, as property prices in Sydney are expected to fall in the next two years. The level of apartment construction in New South Wales contrasted the trend in Victoria and Queensland, where activity has begun to slow down.

A stable construction activity presents a win-win for builders and suppliers. As demand remains steady, suppliers will offer competitive prices for construction supplies to lure as many customers as possible.

May 2, 2018 at 8:19 pmStraight Study