NSW construction forecast looking up

Master Builders Australia is projecting a good year for the construction industry in New South Wales (NSW), according to their Building and Construction Industry Forecasts. So good, in fact, It is expected to reach an eight-year high.

“Construction work done in the state will rise by 15% from the previous year to be more than $50 billion in value,” Peter Jones, chief executive of Master Builders Australia, said.

“Growth is predicted across the board with residential building leading the way with a forecast rise in dwelling commencements of 11% in 2015 driving an increase of over 17% in the value of residential building work done to be around $16.5 billion in 2014/15,” he said.

“The forecast highest levels of residential building in seven years will result in the value of the work done on detached housing and apartments rising by over 22% ($7.3 billion) and 12% ($6.7 billion) respectively this year. An increase in the value of work done on renovations is also forecast to rise by over 17% ($2.5 billion) over the same period,” Jones said.

“While forecast growth in 2015 in commercial building is modest, the sector is on the cusp of recovery driven by strong predicted growth in subsectors such as recreation and entertainment related construction. Accommodation construction is another bright spot where the value of work done is forecast to rise by over 19% to around $645 million and 59% to around $577 million respectively,” he said.

“Engineering construction is also tipped to see an upswing, with the value of work done predicted to rise by around 20% in 2014-15 to be around $25 billion driven mainly by increased federal and NSW government funded construction activity in transport infrastructure and heavy industry,” Jones said.

“Increases are forecast in the value of work done in subsectors such as roads (over 5% to be equal to $6.5 billion), bridges, rail and harbour (over 110% to be equal to $4.8 billion) and heavy industry (over 49% to be equal to $5.3 billion),” he said.

“The strong growth highlights the vital contribution building and construction makes to the NSW economy. Master Builders calls on both parties in the upcoming state election to adopt policies to promote a stronger building industry, a stronger state economy and more jobs,” Jones said.