- By Caitlin Shields
- Sep 23, 2023
This Mitchell Brandtman Quarterly Construction Cost Update has been put together to help keep you informed on the movements of the market to better position yourself for your current and future projects.
All markets across Queensland remain hot with the total value of building approvals hitting new peak levels. While the dynamic of project types is shifting, the sheer volume of new work to deliver continues to compound an already frustrated industry. As anticipated, domestic construction has eased slightly with signs of trade level competition emerging, however the public sector commitment has dominated the latest quarter of data and will continue to drive a divide between small and large scale construction activity and pricing.
The record public sector spend will dominate the conversation and attention of our upper tier Contractors, leaving delivery in the private sector challenged from a capacity, capability and feasibility point of view. Activity levels will continue to influence building costs differently across the various sectors and regions as these packages roll out across their local markets.
Opportunities will continue to emerge in the smaller scale, quick to market type product which suits the current risk averse trade sector. Larger and more complex developments will need to approach the market with an open mind for the foreseeable future.