Master Builders Building and Construction Forecasts
This is the fourth update of our construction activity forecasts through the pandemic. We have seen a dramatic turnaround in expectations thanks largely to government stimulus which has unlocked household investment and boosted confidence.
The value of construction activity is expected to top $3.48 billion over the next 12 months, and support $10 billion in economic activity in Tasmania.
Residential construction has surged thanks to HomeBuilder with the forecasts for the construction of new homes now above pre-covid levels.
Commercial construction continues to be supported by public projects but is still below pre-covid levels with stalled projects affecting the outlook.
During the last quarter of last year Tasmania was one of only places to see growth in civil and engineering construction. Over this year and next we predict the value of work done on civil construction projects will grow by around $500 million.
Now the Federal Budget has been released, we need to see a transition from stimulus to policies supporting an economy that is again driven by business and households.
Governments have thrown everything at protecting our economy from COVID. But this still only meant government spending was able to match $1 for every $5 spent by the private sector.
Our economic horse power sits in our households and businesses and to sustain the recovery it must be led by the private sector. We hope to see the Federal Budget putting policies forward which incentivise private sector investment.
With every dollar spent in construction supporting $3 in broader economic activity it makes good economic sense to continue to put the construction sector at the centre of our recovery strategy. We have shown over the last 12 months that we can shoulder the responsibility of building our way out of COVID.
MORE: TAS Forecast May 2021