Australia's Construction Industry: Facing Rising Costs and Productivity Concerns

One observer says the construction industry has ‘been allowed to gradually decline in its robustness and its competency’ for the past 25 years.One observer says the construction industry has ‘been allowed to gradually decline in its robustness and its competency’ for the past 25 years.Amid rising costs and a lack of productivity in the construction sector, some say relaxing building standards could help.

Still, other industries are facing similar challenges but will spend much more on research and development this year, it says.“The tech at work is sometimes worse than what you receive at home,” says Davina Rooney, the chief executive of the Green Building Council of Australia. “Your Domino’s pizza, you can track it the whole way through. What is the equivalent in the construction industry?”

Such a response is baffling to planners like Jahn, who said sunlight is “actually critical to stave off mould”. “We also know it’s going to get hotter. We need to be able to live into these dwellings in the future.”While it is early days, there are signs the market will improve – without lowering the bar – as construction cost increases start to ebb.“Growth in construction costs has eased from , recorded in 2022 when costs were rising at the quarterly pace of 4.7%,” said Tim Lawless, CoreLogic’s executive research director.

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