Construction turnover rises despite weak commercial investor confidence

Australian construction turnover jumped 3.7 per cent in September, while commercial property investor sentiment remained subdued, according to new data.

The Australian Bureau of Statistics reported construction industry turnover increased 8 per cent annually from September 2023 to 2024.

Robert Ewing, ABS head of business statistics, highlighted continued growth in the sector.

“Construction turnover has continued to rise over the last three months due to greater activity on major civil and commercial projects,” he said.

The increase followed rises of 2.2 per cent in July and 1.5 per cent in August, after falls in May and June.

Overall business turnover across 13 industries rose 0.2 per cent on a seasonally adjusted basis but fell 0.1 per cent in trend terms.

The NAB Commercial Property Index showed sentiment remained negative despite some improvement in the third quarter of 2024.

Property developer confidence stayed weak, with only 44 per cent planning new projects within six months.

However, commercial property investment has gained traction among investors, according to the Australian Property Investor’s Property Sentiment Report.

The report showed commercial property transactions quadrupled from 3.1 per cent to 12.5 per cent over three quarters.

The proportion of investors taking a “wait and see” approach dropped from 39 per cent to 22 per cent since late 2023.