Australia recorded 1,127 new projects in the construction pipeline in May, according to Cotality’s Cordell Construction Monthly.
That’s up 8.6% from April, but still 6.5% lower than the same three-month period last year.
NSW and Victoria were the most active states, contributing 242 and 252 projects respectively.
Civil engineering made up the largest share of projects nationally (29.5%), followed by apartments and units (21.8%) and community developments (19.8%). Commercial, industrial, and mining projects made up smaller shares.
The total estimated value of new projects added to the pipeline in May reached $16.4 billion.
This comes as builders nationwide continue grappling with rising construction costs and delays in material delivery, following lingering supply chain disruptions post-COVID.
“The median project value across the country was highest in mining ($1 million), followed by apartments and units ($1.5 million), and community projects ($900,000),” according to the report.
Despite the increase in pipeline activity, only 81 projects moved into the construction phase in May – up slightly from April’s 77 but significantly below the 207 seen in May last year.
“The number of projects moving into construction over the past 12 months is 56.1% lower than the previous 12-month period,” the report said.
NSW (22 projects) and Victoria (23 projects) again led the country in project commencements, while no projects moved into construction in the Northern Territory.
The total estimated value of projects breaking ground in May was $1.45 billion. Community, apartments and units, and industrial projects accounted for the largest share of that spend.
Key projects in New South Wales included the expansion of the General John Baker Complex Facilities in Bungendore, as part of a Defence infrastructure initiative. The project supports Australia’s defence operations through upgraded HQJOC facilities.
A $302 million industrial development at Wetherill Park also began, adding to the state’s logistics infrastructure.
“The development process is now at the design and construct package, signalling the start of the next phase in delivering this critical national defence asset,” the report said.
Victoria’s construction sector was driven by mixed-use and health developments.
The Balwyn Lifestyle Centre, a community-focused development featuring shops, cafes and wellness amenities, entered the tender stage in May. Also progressing was the $310 million Goulburn Valley Hospital Integrated Cancer Centre.
“The project is expected to provide integrated oncology treatment, consultation, and support services with potential for future expansion,” the report said.
In Queensland, the Australian Defence Force’s coastal and amphibious infrastructure program led activity, with tenders advertised for upgrades to several facilities.
A $130-$150 million mixed-use project in Broadbeach was also announced, featuring retail, accommodation, and entertainment offerings.
Western Australia focused on education and infrastructure with major upgrades at Rockingham’s Safety Infrastructure School and Edith Cowan University’s South-West Campus.
The ACT had limited movement but did see the progression of the Commonwealth Avenue Bridge upgrade, while the Northern Territory’s activity was primarily tied to ADF infrastructure proposals.
Mining activity remained subdued in terms of project count but carried high values. The Mount Holland Earl Grey lithium project in WA, a joint venture between Wesfarmers and SQM, remained a standout.
The project “aims to produce high-purity lithium products critical for the global electric vehicle and renewable energy industries,” Cotality reported.
