Australia’s standoff / friction with China seems to be waning, 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 good news for the Australian construction sector is that Australia is seeing a good number of new Data centers / AI facilities breaking ground around the country.

Expansion of Data Centre Capacity

Australia’s construction market is estimated to be in the $180 to $210 billion range by the end of 2025

The Australian home building construction sector is set to contract by 3% to 5% as we transition 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.