Residential vs. non-residential construction
The value of residential construction work completed across Australia amounted to around 30 billion Australian dollars higher than that of non-residential construction work in 2023. Sector-wise, the value of construction work in the private sector was significantly higher than in the public sector. While Australia’s residential housing stock increased in 2023, construction work slowed, and new dwelling commencements and approvals fell. Despite the government's goal of providing a sufficient housing supply for its population, new home commencements were forecasted to fall in 2024, worsening Australia’s housing stock and population growth disparity.While residential building activity was subdued, construction in the non-residential segment, including commercial buildings such as offices, retail outlets, and industrial facilities, remained relatively stable. Recent investments focused primarily on schools, hospitals, and warehouses. The value of construction work on warehouses in Australia amounted to over six billion Australian dollars in 2023, with growing demand attributable to the pandemic-induced e-commerce boom.
