May 2010 - Building and Construction

The construction industry has been underpinned by the government stimulus work (primarily BER) and the residential industry in Melbourne. There are signs that other sectors are emerging from hibernation. There is much anticipation around the potentially massive infrastructure pipeline, and the recovery in the NSW market, but the question remains whether the timing works – can the private sector pick up the slack when the government stimulus spending runs out? General consensus appears to be yes – FY11 is expected to see many projects kick off. While there is plenty of talk that the banks have opened the doors again for business, construction finance remains very selective, subject to stringent conditions and expensive.

Please contact Jodie Baker & Lorraine Robinson for more information