MARKET INSIGHT | AUSTRALASIA
REGION ON THE RISE
The construction outlook in 2026 is strengthening in Australasia due to rising investment, government infrastructure programmes and growing activity across mining, manufacturing and critical minerals, which is supporting regional growth. Australia remains the key market in the region, while New Zealand is growing despite economic and financing challenges. With major projects across the industrial and infrastructure sectors, the region’s project pipeline looks set to continued opportunities through to 2030.
A
ustralasia’s construction outlook strengthens in 2026, with regional output forecast to grow by 4.2%, up from
2025, before easing to an average of 3.5% a year from 2027 to 2030. Australia leads the recovery with output projected to accelerate to 4.8% in 2026, supported by a surge in commercial approvals, which increased 53.1% YoY in Q1 2026, alongside record public infrastructure spending and preparations for the Brisbane 2032
Olympic Games. The government is maintaining a rolling infrastructure pipeline of more than AUD120bn ($77.3bn) over 10 years and has committed AUD47bn ($30.3bn) to its Homes for Australia housing plan. In addition, growth will be further aided by a AUD5bn ($3.2bn) critical- minerals partnership with the US. New Zealand is also returning to growth, with output expected to expand 2.1% in 2026 following a steep contraction in 2025. Falling
interest rates, rising building consents and a new National Infrastructure Plan are supporting the recovery, although output remains below 2023 levels. Both markets continue to face a challenging operating environment, with rising insolvencies and liquidations as tighter financing erodes margins. Restrictive monetary policy is also suppressing residential activity despite acute housing shortages, while the Middle East conflict continues to keep fuel and construction
38 | September 2026 |
www.hoistmagazine.com
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