Australia market insight report Q2 2020

Construction activity and momentum remained strong over Q1, however, the full impact of COVID-19 on the construction industry became apparent in Q2.

The cost of construction has increased across Australia as a result of a reduction in productivity due to heightened social distancing requirements.

With concerns increasing due to recession and the uncertainty of what the pandemic will do to our economy, businesses have tightened their belts and pulled back on their investments. This has resulted in a large number of projects in the private sector being deferred or abandoned.

Effects of COVID-19

Construction activity remains at reasonably high levels in most states across Australia, however, a number of projects will be reaching completion and construction activity is likely to contract significantly. Despite attempts to fast-track shovel-ready projects and bring forward construction projects, these will still take time to break ground and a trough in construction activity is expected.  

Leading the decline in construction activity is the commercial, residential, office, retail and aged care sectors. Major transport projects and the public sector project pipeline that includes health, education, institutional buildings and defence will prevent construction activity from falling further.

How the Australian defence sector can increase its capital efficiency

The Australian defence sector has continued to invest during the COVID-19 pandemic with the Australian Defence Force in a period of unprecedented change as it makes a strategic realignment to transform and become more agile, adaptive and capital efficient.

We outline three areas in which the defence industry can become more agile and adaptive in order to access the right skills resources, bolster industry capability and manage risks to the supply chain.

Download the report to read more about the challenges and opportunities affecting the construction industry in New South Wales, Queensland, Victoria and Western Australia.


Further resources

Please visit our COVID-19 response page for all of our resources relating to the impact of COVID-19 on the construction sector.

For further information contact:


Simon Kearney
Director - Real estate

t: +61 282 450 000