Australia & New Zealand

The recent Israel vs. Iran conflict & the US involvement casts a dark shadow on future Australia & New Zealand economic / construction growth prospects, we will know which way the wind is blowing in the couple of months. Unfortunately, if Russia, China & Turkey respond or gets involved a major war could result.

Australia’s construction market is estimated to be in the $180 to $210 billion range by the end of 2025. Australia’s construction industry (like the US) is experiencing a shortage of skilled construction workers.

The unusual recent naval operation of (3) Chinese warship sailing in & around the Tasman Sea has set off alarm bells in both Australia & New Zealand. 

Australia’s standoff / friction with China seems problematic & hard to understand / to be in a state of flux, as China commences purchasing iron ore and other minerals once again. Conflicts in Europe and the Middle East and the ongoing attacks on shipping in the Red Sea area have increased ocean freight costs, this has not been beneficial to the Australian and New Zealand construction sectors in the last 6 to 12 months as a good amount of construction materials are imported into the two countries.

Some decent news for a change in the Australian construction sector – Australia is seeing a good number of new Data centers / expansion of Data Centre Capacity / AI facilities breaking ground around the country.

The Australian home building construction sector is set to contract by 3% to 5% as we move further into 2025.

The size of the New Zealand construction market is estimated to be in the $55 to $60 billion in 2025, construction activity is expected to remain similar to 2024 levels.

Overseas – ocean freight costs have started to trend downwards again, the importation of construction materials and capital goods into both Australia and New Zealand is a significant cost item to both countries.