This month, workers in Sydney will commence drilling up to 1500 boreholes across multiple locations in Sydney.
The holes are needed to test for soil and rock composition under what will be the city’s largest ever largest ever rail tunneling project – the 23km North West link from Epping to Rouse Hill.
As activity ramps up on exploratory work for the project, other work will begin across many parts of the New South Wales/ACT construction industry. In the current financial year, the Construction Forecasting Council (CFC) expects the total value of building and engineering work done to amount to $46.894 billion – up 10.3% from the $42.516 billion which the Australian Bureau of Statistics (ABS) says was recorded in 2010/11. Beyond that, the CFC expects activity to reach $52.066 billion in 2012/13 and $57.424 billion by 2014/15.
Driving these expectations are a good number of significant dollar value projects in the pipeline. These include the mixed use Barangaroo development at Millers Point, the North West and South West Growth Centres water infrastructure project, Sydney Business Park and the creation of the new town of Huntley, near Brankston.
Near term indicators are encouraging. Seasonally adjusted building approvals, which surged 14.63% in August, have now risen for two months in a row and are up 24.25% since June. Whilst further data will be needed to confirm any sustained recovery, these figures do suggest the pace at which new work is coming in has picked up.
Thanks largely to a shortage of housing supply, the residential sector is expected to be the main driver in activity going forward.
For stand-alone houses, the CFC expects the value of work done in the state and territory combined to surge from an estimated $5.594 billion in 2010/11 to $8.951 billion in 2013/14. In that same period, the value of work done on multi-residential construction will grow from $4.586 billion to $6.599 billion.
- Barangaroo (residential component)
- The Landing at Gosford
- Penrith Panthers Expansion – Riverlink Precinct
After modest growth this year, office building activity is set to surge in 2012/13 as projects related to Barangaroo and the mixed-use CityOne development get underway.
In 2010/11, the value of work done on office building construction is estimated to have come in at $1.722 billion, according to the CFC. By 2012/13, the forecaster expects activity of $2.154 billion.
- Barangaroo (office building component)
Construction activity on factories and warehouses is set to increase from $921.1 million in 2010-11 to $1.285 billion in the current financial year. Beyond that, the CFC expects activity to reach $1.540 billion by 2013-14.
- Southern Distribution Business Park
- Sydney Business Park
Strong growth is expected in transport. By 2012/13, the value of work done on road construction is expected to reach $6.076 billion, up from $4.806 billion in 2010/11. That on railways, bridges and ports is expected to increase from $4.909 billion to $6.709 billion over the same period.
- North West Link
- F3 Freeway To Brankston Link – Hunter Expressway – Western Section
- F3 To Kurri Kurri – Hunter Expressway – Eastern Section