NSW leads way in recovery of construction sector
Over the year to December, NSW private non-residential construction climbed 11 per cent and Victorian construction 14 per cent.
The most recent quarter's growth puts the two biggest states on a par with Western Australia, where construction climbed 3 per cent. However, over the year to December, West Australian non-residential construction spending climbed 30 per cent.
About $540 billion was spent on construction work for Victorian wholesalers and retailers in the quarter, the most in five years. The $1.7 trillion total spend by the private sector was also the most in five years.
Victorian government building spending was feeble by comparison. Only $549 billion was spent in the quarter, just 60 per cent of what was spent two years earlier.
In NSW $710 billion was spent on work for wholesalers and retailers, more than at any time since 2009. Private sector non-residential construction spending totalled $1.6 trillion.
Bureau of Statistics figures show government spending was $240 billion, only one-fifth of the $1.3 trillion spent three years earlier.
A Commonwealth Bank assessment of the states' prospects found that NSW retail spending is outpacing the national average, motor vehicle sales are surging and the housing market improving.
Frequently Asked Questions about this Article…
New figures show a strong rebound: private non-residential construction in NSW surged 8% in the December quarter and Victoria rose 4% that quarter. Over the year to December, NSW climbed 11% and Victoria increased 14%.
For the most recent quarter NSW and Victoria recorded positive growth alongside Western Australia, where non-residential construction climbed 3%. On a year‑to‑December basis Western Australia led with a 30% increase, compared with NSW's 11% and Victoria's 14%.
The article reports about $1.7 trillion was spent by the private sector on construction — the most in five years — and private non‑residential construction spending totalled $1.6 trillion. For everyday investors, rising private construction spend signals stronger business investment and demand in commercial property and related supply chains.
Victorian wholesalers and retailers saw particularly large activity: about $540 billion was spent on construction work for those sectors in the quarter, the most in five years.
Government building spending was much weaker by comparison. Victoria recorded only $549 billion in government building spending in the quarter — about 60% of what was spent two years earlier. Nationwide Bureau of Statistics figures also show government spending at $240 billion, only one‑fifth of the $1.3 trillion spent three years earlier.
The Commonwealth Bank assessment noted that NSW retail spending is outpacing the national average, motor vehicle sales are surging, and the housing market is improving — all indicators that can support continued construction and retail activity in the state.
No. The recovery has been driven by private non‑residential construction and strong spending by wholesalers and retailers, while government building spending remains weak in comparison. The private sector recorded record five‑year highs, whereas government outlays have fallen significantly versus earlier periods.
State construction spending highlights where business investment, retail demand and housing activity are concentrated. The article shows NSW and Victoria leading private non‑residential growth and record private spend — information that can help investors spot trends in commercial property demand, retail and construction supply chains without being investment advice.
Call 1300 880 160
Start a chat
Schedule a call
