UNDERSTANDING THE IMPACT OF MARKET CONDITIONS

WT’s Construction Market Conditions Report offers unparalleled insight into Australia’s construction sector. Released twice a year, our economic analysis focuses on cost escalation from a broad market perspective of national, state and sector trends across building and infrastructure.

OUR NOVEMBER 2024 REPORT IS OUT NOW

Sustained growth in sector investment is required to solve unsustainably high escalation. When will this shift begin and what will happen to markets in the interim?  

Our latest report explores how elevated construction cost escalation might be resolved and the key signs to watch out for. 

November 2024 Report Highlights

  • Cost escalation forecast to 2027 remains stubbornly elevated, around 5 per cent per annum on average nationally. 

  • The three-year base case outlook for building is forecast of an average of 5.5% in 2024, remaining above 5% through 2026 before jumping to 5.7% in 2027. 

  • The three-year base case outlook for infrastructure is 4.8% this year, moving back around 5.5% to 2026, and remaining above 5% in 2027. 

  • Recovery in construction activity and the broader economy should become apparent by 2026, which would make the overdue increase in sector investment more attractive. 

  • Necessary sector investment would play a key role in increasing downward pressure on escalation from 2028. 

Watch our Contruction Economist share key report insights

Damon Roast further examines the drivers of elevated escalation, how and when this unsustainable situation may end, and key indicators to look out for.

Watch our experts discuss state-by-state market analysis

National Directors Ian Menzies and Nicole Trumbull are joined by our Construction Economist Damon Roast to discuss construction cost escalation, including state-by-state market analysis, and insights to overcome these challenges.

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