More than 2000 new projects entered Australia’s construction work pipeline with a combined worth of $25 billion in November.
November's total estimated $25 billion value for new projects is down 16 per cent on the previous month, however Corelogic research shows the value of new projects is nearly double the three-year median value “indicating continued strength in construction applications”.
A total of 2,210 new construction projects entered the nation’s pipeline of work last month, with Corelogic data revealing this figure was slightly below the yearly high of the 2,292 projects recorded in October this year.
CoreLogic commercial research analyst James Shang said infrastructure projects continue to dominate new project work in both quantity and value, with apartments and units a close second for quantities of projects.
While the number of new project applications have reached record levels, Shang said the value of projects shifting into the construction stage fell for a third consecutive month.
“Whilst this figure is 53 per cent higher than the recent low in October, it’s actually low when you factor in the strong level of activity in new development applications and when compared to historic levels, too.”
Despite the strong number of new project applications, Shang says the outlook weakens for projects further down the pipeline transitioning into the construction phase.
“The impact from a tightening credit environment clearly extending beyond the residential market,” he says.
Civil engineering projects made up 52 per cent of projects moving into the construction phase, while 54 per cent of value for projects was recorded in the commercial sector.
Mining held the highest median project value at $4.15 million.
Notably, Australia's infrastructure projects continue to account for the majority of new project work in both number and value.
Rounding out the year, Western Sydney's Aerotropolis development, anticipated to generate 200,000 new jobs, is a significant infrastructure project explained Shang.
Described as a "game-changer", the project has an estimated cost of $8 billion, and accounted for 50 per cent of the total new project applications in New South Wales for November.