CoreLogic’s Cordell Construction Monthly Data for January 2018 confirms that 1,719 development applications and proposals were added to the construction pipeline across Australia in January.
This represents a significant increase on the number of development applications captured in the previous month (+31%), reflecting what is likely a seasonal surge in construction following the holiday season.
The combined value of projects captured in the pipeline over January (including commercial, industrial, and apartments and units) was nearly $18bn. “This combined construction value is above the 5-year average of AU$13.6 billion, and was also substantially higher than the $6.4 billion recorded in December,” the report said.
Residential projects captured by CoreLogic represented 21% of the $17.9bn in work proposed over the last 12 months, with residential proposals making up 32% of the number of new projects captured in January.
As reported in the December edition of the report, affordable housing is also rising as a component of residential development in response to affordability constraints in the capitals. Eliza Owen, commercial property research analyst at CoreLogic, confirmed that this was demonstrated recently with the revival of the Kamira Court Project in Western Sydney, which finally saw renewed interest following the initial development proposal in 2011.
“While development applications continue to increase, the number of projects moving into construction in January was 640 – far lower than the 5 year average of 1,023 projects per month, Owen said. “This result could be partially due to seasonal factors, as CoreLogic project data indicates the average commencements for January over the last 5 years was 805 projects.”
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