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Commercial construction reaches record levels as residential slows

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Commercial construction reaches record levels as residential slows.


The latest crane count reveals a significant shift in Australia's construction sector, with commercial and infrastructure projects reaching record levels while residential development declines.


According to Ray White, the RLB bi-annual crane count for Q3 shows non-residential construction at its highest level since records began in 2015. "The non-residential sector has demonstrated robust growth, with an increase of 34 cranes over the past six months, bringing the total to 370," Ray White said. "Meanwhile, residential cranes have decreased from 535 to 493 during the same period."


Sydney continues to dominate construction activity, Ray White said. "Greater Sydney hosts 246 cranes for residential projects, with the western region showing particularly strong growth, increasing from 95 to 108 cranes," they said.


Ray White also noted a dramatic transformation in Melbourne. "Melbourne's residential cranes have fallen significantly from 107 to 81," they said.


"The focus has shifted to infrastructure, with cranes for civil, civic, and data centre projects all continuing to grow."


Mixed-use developments remain strong performers, according to Ray White. "This trend is fuelled by the ongoing need for residential dwellings and the growing popularity of projects that combine residential spaces with retail, office, or hotel facilities," they said.


Ray White also observed some concerning trends in social infrastructure.


"Development sectors of aged care and education have seen minimal positive change in crane numbers, despite Australia's ageing and growing population," they said.


"Additionally, retail and hotel sectors show limited new supply projects, which is likely to continue fuelling their demand in the investment market."

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