Construction Trends New South Wales
New South Wales is leading the way in the recovery of Australia’s construction industry. After the post-recession doldrums of 2008-2009, NSW has experienced an eight per cent increase in the non-residential sectors. Commercial construction has gone up by eleven per cent in just 12 months.
All of these positive figures can be attributed to shrewd state spending and generous private investments. In the aftermath of the 2008 credit crunch, the residential housing sector took a dangerous dip, and threatened to take the rest of the NSW construction industry down with it. This is because, in lieu of the recession, home-buyer confidence was at an all-time low. Prices for building materials, like steel, skyrocketed and prevented many would-be builders from investing in new houses.
NSW legislation turned to the commercial and institutional sectors in order to resuscitate the industry. The state invested 710 million dollars in the construction of colleges, universities and retail space. This was complimented by further investments from the private sector, which came up to 1.6 billion dollars in total. These endeavours proved worthwhile, and served to boost construction activity in 2011 and 2012.
Will the Housing Sector Ever Recover?
All is not lost with residential construction, however. Despite slow growth, NSW actually leads the rest of the country in terms of home-building figures. Deloitte even predicts that residential construction should rise by 8.4% in 2016 and an impressive 11.1% in 2017.
This can be attributed to a gradual increase in consumer confidence, which analysts predict will grow in the coming years. Already the signs are here: to low mortgage rates are slowly drawing in more enthusiasm from the prospective home-buying market. An increase in rental vacancy rates should also contribute to more people wanting to build their own homes. The advantages of this are obvious: more confidence will equal more construction – and more jobs.
Large Construction Projects in NSW
Current projects are fuelling the demand for skilled construction tradespeople. The first of these is Barangaroo, an inner-city development project based in and around the Sydney CBD. It involves the construction of Barangaroo South, Baragaroo Central (projects that have recently been completed) and the proposed Headland Park.
Barangaroo South is an extension of the Sydney CBD, featuring the construction of high rise buildings with a commercial emphasis. Barangaroo Central consists of low rise residential space, as well as a luxury hotel and casino. The proposed Headland Park project consists of a 6 hectare cultural facility and open parkland.
One of the most ambitious and lucrative NSW construction projects is the redevelopment of the Sydney Convention Centre. It was designed to transform the Darling Harbour and create a new, exciting venue for a variety of corporate, cultural and ambassadorial events. Right now, it is made up of a 40 000 square metre exhibition space. It has enough space to accommodate over 10 000 delegates, and features a range of multi-function conference halls and meeting rooms. The Centre also boasts space for theatrical, music and sports events, with enough space to accommodate 12 000 people.
If you’re interested in taking your skills to the pulse of Sydney and NSW, find out which occupations are in demand. Analysts predict that within the next five years, NSW companies will be hungry for workers in paving, bricklaying, roofing, mining and heavy machinery.