Building Forecasts > Report
It is estimated that the value of total building commencements fell 10% in both FY2019 and FY2020 to $103.62 billion. The contraction has been driven by weaker new residential building. Modest growth in non-residential building (+2%) in FY2020 prevented a deeper fall. It is forecast that total building activity will edge back a further 7% to $96 billion in FY2021, with New South Wales (-17%) and Victoria (-14%) continuing to drive the decline. While public investment is expected to hold up with the support of scheduled major projects and stimulus, commercial & industrial building is anticipated to fall sharply as firms scrap investment plans in response to the COVID-19 shock. A further leg down is set to play out in the residential sector, with the HomeBuilder program softening the fall.
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