Australia market insight report Q3 2019: Digital age is driving exponential growth

Simon Kearney

Director - Real estate

Australia and New Zealand

As businesses continue to move towards the digital age, demand for data centres is rising across Australia.

Our Q3 2019 Australia real estate market insight report highlights that the construction sector continues to perform strongly.

Cost escalation in construction is reported to rise 4 percent in Sydney, 3.5 percent in Melbourne, 3.3 percent in Brisbane and 0.5 percent in Perth.

The current capacity of the supply chain varies significantly between states which generally reflects the current stage of the industry life cycle. New South Wales and Victoria’s supply chains are above capacity while Queensland and Western Australia are borderline between slow and normal.

The continued heavy investment in infrastructure, including data centres, continues to keep the construction industry busy.

The data centre sector is thriving

The data centre industry in Australia is thriving and we see this sector as a major growth area for capital investment over the coming years, particularly along the Eastern seaboard in New South Wales and Victoria.

Australia’s increased international connectivity with multiple new cabling landings in addition to second and third generation new cable landings into the East and West coasts is contributing to the driving demand for data centre growth.

The data centre industry is moving quickly and is the engine room of future technology growth within the property industry.

Constructing, maintaining or upgrading technological infrastructure presents many challenges but also great opportunity. In our Q3 2019 report, we unpick the trends, opportunities and challenges in the design, procurement and delivery of data centres.


For further information contact:

Simon Kearney
Director - Real estate

t: +61 282 450 000