2018 CCF Victorian Infrastructure Outlook Report 1 | Page 6

Key Indicators Victoria: State Final Demand, Gross State Product and Engineering Construction Activity,
2014/15 Constant Prices
Source: BIS Oxford Economics, ABS data
Key Findings •
Total construction activity is expected
to moderate from 2018/19 as residential building
(particularly in the high density apartment segment)
starts to fall following record levels of activity in recent
years. However, non-residential building and engineering
construction, though cyclical, are forecast by BIS Oxford
Economics to remain above 2016/17 levels throughout the
next four years.
•
Both public and private sector investment is
driving higher levels of civil construction work. Publicly
funded engineering construction work done is expected
to account for around 45 per cent of total engineering
construction activity, at around $5.7 billion on average
each year over the four-year period. •
Falling construction activity (as the housing
boom unwinds) and weaker growth in consumer spending
is anticipated to see some weakening in state economic
growth in coming years, but growth is still expected to
remain relatively robust, supported by a healthy pipeline
of infrastructure projects and rising non-mining business
investment.
•
Over the next four years, Victorian engineering
construction activity – encompassing transport, utilities
and mining and heavy industry construction – is forecast
to average $12.8 billion per year, higher than the $10.9
billion of the previous five-year period. Major activity will
be driven by construction within the roads, railway and
telecommunications sectors particularly.
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