Retail investment prompts surge in construction activity
In its latest forecasts of building and construction activity, the industry body said it expects the non-residential construction sector to grow by 14.6 per cent in 2017-18 and be valued at $42 billion.
“Of this, $6.9 billion is forecast to come from the influx of international retailers into Australia – particularly the arrival of Amazon and expansions by Costco and Aldi,” said Matthew Pollock, Master Builders national manager, economics.
“The latter has plans to open another 30 stores around the country in the next 12 months.”
“A positive of the forecast commercial construction surge is that growth is expected to be broad based with construction related to office space and resort and hotel accommodation also making a strong contribution,” he said.
Logistics firm Toll Group recently launched its $160 million next-generation distribution centre in western Sydney, in a move it says will support the growth of online shopping in Australia.
Meanwhile Carl’s Jr is another international entrant to recently announce it’s looking to open 30 more locations.
Office space is set to make the biggest single contribution with a strong pipeline of projects supporting expectations related to construction work to top $6.8 billion in 2017-18.
“Meanwhile, tourist numbers from our neighbours in the Asian region continue to grow and will support a major influx of Asian investment into resort and hotel accommodation,”said Pollock.
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