New South Wales and Victoria continue to power ahead with solid economic growth and high levels of public sector infrastructure investment in roads and rail. The resources states of Northern Territory, Queensland South Australia and West Australia are slowly emerging from the hangover of the commodities market.
Residential apartment building programmes in Brisbane, Melbourne and Sydney have been surging, fuelled by low interest rates and strong demand from Chinese investors in the capital cities.
There are fears that Brisbane and Melbourne are reaching the end of the apartment cycle. Commercial construction remains less buoyant, but growth in the financial and tourism sectors are driving large tourism projects, including Jewel on the Gold Coast, Queens Wharf in Brisbane and Barangaroo in Sydney.
The Perth market remains a little flat with resources activity in a slump, but state investment in infrastructure and the airport expansion will keep the sector afloat.
The outlook for Australia is positive, notwithstanding the risk of higher borrowing costs and the high level of private household debt tied up in real estate. Investment in residential construction is entering a cyclical slowdown, but retail, hotels and infrastructure will go some way to closing this gap.