Outlook & forecasts

Master Builders Queensland Building Industry Outlook

Master Builders Building Industry Outlook provides a timely and comprehensive snapshot of the current state of the building and construction industry's importance to the economy. It's also a useful assessment of business sentiment and the current outlook.

Challenging and interesting times are ahead for Queensland’s residential builders in the face of strong demand, continued trade and materials shortages, and the impact of the current COVID-19 wave.

2022 Building Industry Outlook

Building Industry Outlook 2022

Our industry has weathered two turbulent years through the COVID-19 pandemic. Lockdowns and border closures had us staring at a cliff as all new construction work came to a halt. Then there was a sharp turn in demand for residential work off the back of government stimulus and shifting consumer demand. Non-residential work did not receive the same support and continued to struggle through a lack of investor confidence.

The surge in demand for residential work was mirrored not only around Australia but around the world and has led to soaring prices and lengthy delays for construction products and trades. Now in the latest twist, the industry is struggling with additional delays and price hikes brought on by the spread of the Omicron variant. In 2022, demand will fall back but remain strong and there is no end in sight to the challenging environment in which buildings will need to be delivered. Master Builders 2022 Outlook is predicting 38,000 new homes will be built during 2022, an almost 20 per cent increase on the 32,000 commenced in 2019 (pre-pandemic).

The prediction is supported by a booming property market and strong lending data for the three months to December 2021, which is sitting above pre-pandemic levels.

2021 Building industry data

Residential demand
2021 saw the sharpest spike in demand for residential construction since records have been kept. Total approvals in the 12 month period moved up by 41 per cent. Growing from $12.4 billion to $17.4 billion.

Non-residential demand
Demand for non-residential construction has taken a hit throughout the pandemic without the same level of government stimulus to counter the lack of certainty. The public sector support has been forthcoming with an increase in spending on building work in areas like health, education, culture, and recreation.

In recent months the elevated government spending on public buildings has come to an end. Fortunately, private sector investment was ready to move back up as the demand for building new projects in areas like offices, short-term accommodation, retail, and industrial returned.

The non-residential sector is also struggling with unprecedented price hikes and delays.

Previous year's outlooks

We've been producing these outlooks for many years. Take a look at previous years outlooks:

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