Construction Costs In Australia To Go Up

Australia: Rising wages, increased demand for materials and labour from housing, health, energy, and defence projects, and the shift towards lower-carbon alternatives are increasing construction costs in Australia, especially in infrastructure development projects.

Previously, cost escalation in areas such as roads and ports had surged by up to 10% year-on-year due to global post-pandemic pressures. Although these increases had subsided, they are now climbing again in 2024 due to growing domestic demand, even as consumer inflation remains subdued.

According to separate forecasts from the Australian Construction Industry Forum, non-mining infrastructure spending is expected to jump by 10% this year, reaching AUD 96.1 billion (USD 64 billion) from AUD 87.4 billion (USD 58 billion) in 2023, and is projected to rise to AUD 99.7 billion (USD 66 billion) by 2026.

Source: Financial Review