MARKET INSIGHT | AUSTRALASIA
Australasia – Industrial construction project pipeline Funding mode (% of total)
Public 4.1%
Public/private 3.5%
other secondary production increased by 38.7% year on year during the first three months of 2026, reaching AUD269.4bn ($173.6bn), compared with AUD194.3bn ($125.2bn) during the same period in 2025. This followed an annual decline of 14.3% in 2025. The figures were particularly volatile, with approvals increasing 175.9% year on year in March, following growth of 25.7% in February and a 60.1% decline in January. Mining investment is also gaining momentum.
The total value of mineral exploration rose 16.3% year on year in Q1 2026, from AUD816.2m ($526m) to AUD949.3m ($611.8m). This followed annual increases of 6.9% in Q4 and 5.2% in Q3 2025, while the total value of mineral exploration increased marginally by 0.2% across 2025.
Private 92.4%
industrial construction spending in Australasia is expected to increase from an estimated $17bn in 2026 to a peak of $45.1bn in 2027. Australia’s industrial construction sector is
forecast to grow by 3.9% in real terms in 2026, followed by average annual growth of 2.6% between 2027 and 2030. Growth is expected to be supported by increased private-sector investment in manufacturing facilities, higher factory building approvals and continued investment in mining and mineral processing. Government policy is also providing support for the sector. Under the Future Made in Australia agenda, the Critical Minerals Production Tax
40 | September 2026 |
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Incentive (CMPTI), passed in February 2025, provides a 10% refundable tax offset on eligible costs associated with the processing and refining of 31 critical minerals. The incentive will be available from 1 July 2027 through 30 June 2040. In addition, the Australian Government allocated AUD5.5bn ($3.6bn) in its FY2025–26 Budget to support the mining and manufacturing sectors, with funding projected to rise to AUD6.7bn ($4.4bn) by FY2028–29. Recent data points to strengthening activity
across the industrial sector. According to the Australian Bureau of Statistics (ABS), the nominal value of buildings approved for factories and
A pipeline of opportunity The industrial construction pipeline in Australia, including mega projects valued at more than $25m and projects from pre-planning through to execution, is currently valued at approximately $217bn. Early-stage developments account for the majority of this pipeline, with projects in pre- planning and planning representing 66.2% of its total value as of June 2026. The largest project currently tracked is the $24.9bn Cape Hardy Green Hydrogen Hub and Industrial Precinct in South Australia. The development will transform approximately 1,200 hectares into a green hydrogen and industrial hub, incorporating hydrogen production and storage facilities alongside wider industrial infrastructure.
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