Australia’s construction sector saw a fresh drop in project activity in April, with new project approvals down 11.9% from March, according to CoreLogic’s latest Cordell Construction Monthly report.
Only 1,046 new projects were identified nationally – continuing a downward trend that’s seen a 5.8% annual fall in new project numbers.
The total estimated value of new projects reached $4.4 billion in April. Among the largest was a $250 million data centre in Truganina, Victoria, followed by a $210 million over-50s lifestyle project in Townsville, Queensland.
Despite the downturn, the sector is witnessing a shift towards sustainability and innovation.
The federal government’s recent commitment of $54 million aims to accelerate the adoption of prefabricated and modular construction methods, addressing housing shortages and promoting efficient building practices.
The number of projects entering the construction phase continues to plummet, with just 87 projects identified in April – down from 152 the previous month and significantly lower than the 528 recorded in April 2024. Over the past 12 months, project commencements are 17.6% lower than the year before.
Despite the lower volume, April’s total value of construction starts still hit $1.3 billion.
However, there are signs of cost stabilisation.
Residential construction costs grew by just 0.4% nationally over the March quarter, marking the lowest quarterly increase since March 2010. This slowdown brings the annual rise in construction costs to 2.9% over the 12 months to March 2025, easing pressure on builders and developers.
A $148 million mixed-use development in Austral aims to transform the area into a thriving urban centre, featuring three towers and nearly 500 apartments.
In Dubbo, Squadron Energy has proposed a $51 million mixed-use workers’ accommodation hub.
Other highlights include a 102-dwelling residential site in Marsden Park and a new $38 million church in Rydalmere designed for large-scale community events.
Docklands will welcome a 38-storey mixed-use tower featuring 434 residential and 126 serviced apartments, developed by Salta Properties.
Meanwhile, Development Victoria’s residential plans for surplus government land in Kew aim to deliver 500 new dwellings.
Echuca’s regional dental facility will also benefit from a $10.2 million upgrade funded by the state’s Regional Health Infrastructure Fund.
Queensland’s pipeline includes the early planning phase of a 12,000-seat Gold Coast Arena, a 350-dwelling lifestyle village in Bohle Plains, and the $140 million twin tower high-rise in Surfers Paradise.
The ambitious Mango Hill Urban Village Masterplan also promises over 2,300 homes and 118,000 sqm of commercial space across 23 stages.
Adelaide’s Hilton is being redeveloped into a five-star Amora Hotels & Resorts property under a $40 million plan. A 38-storey mixed-use project is also underway on King William Street, combining office, hotel and retail uses.
Perth is set to benefit from a $160 million student accommodation and commercial precinct near UWA. Other major developments include several new primary schools in Eglinton, Treeby, Vasse, and Yanchep, and a $20 million lifestyle village in Bullsbrook.
An eight-storey East Perth project will add 56 apartments and mixed-use retail space.
Tasmania’s largest project is a proposed 288 MW solar farm in Cimitiere Plains. The NT’s Mantiyupwi Motel is planning a 16-unit expansion, and the ACT continues to develop mid- and high-density housing including a $93 million Belconnen apartment and childcare complex and a $17.7 million eight-storey project in Braddon.
