Australia Construction Sector Signals Gradual Recalibration

Australia Construction Sector

Australia: Global construction market intelligence firm Hubexo has released its 2026 Construction Outlook Report, outlining a period of recalibration for the Australian construction industry following several years of volatility, cost pressures, and capacity constraints. According to the report, the sector is entering 2026 in a reset phase, characterised by more disciplined project sequencing and a stronger focus on capacity management rather than rapid expansion. Hubexo noted that early-stage project values have begun to strengthen, supported by easing inflation, improved consumer confidence, and clearer policy settings, with total construction commencements projected to rise between the fourth quarter of 2025 and the third quarter of 2026.

Hubexo reported that project volumes in 2026 are expected to exceed previous levels, signalling renewed momentum in residential development as deferral and abandonment rates decline. However, labour shortages, particularly in Queensland and Western Australia, along with planning delays and land supply constraints, remain key challenges affecting timelines, pricing, and delivery certainty across the sector.

Source: Hubexo