Building boom tipped for $4b

THE Tasmanian construction sector is buoyant, with forecasts showing records will be broken as total value of building hits $4 billion in two years.

Master Builders Tasmania said the state continued to win about 2000 more residents from the mainland each year and major projects were fuelling growth in commercial construction.

Master Builders Tasmania executive director Matthew Pollock yesterday said the pipeline of commercial and engineering construction projects was unprecedented.

TASMANIA’S construction sector is upbeat with new figures showing the total value of work done in the state should break records and then peak in 2021-22 at $4 billion.

Master Builders Tasmania said the state continued to win about 2000 more residents from interstate each year and major projects were fuelling growth in commercial construction.

Master Builders Tasmania executive director Matthew Pollock said the pipeline of commercial and engineering construction projects was unprecedented, thanks largely to government-backed infrastructure and a strong economy.

Mr Pollock said the forecasts were compiled before the coronavirus pandemic struck but he was reasonably confident the underlying fundamentals were still strong over the long-term.

He said the focus now was to maintain capacity and ensure there were the workers there to carry out the building.

“The Federal Government has come out in support of apprentices and we are speaking to them on that issue,” Mr Pollock said.

“What these forecasts show is that the long run fundamentals supporting the construction industry are strong.”

Commercial building activity hit an eight-year high during 2018-19.

The statistics project that activity will record a 35.5 per cent leap forward this financial year followed by 42.4 per cent growth in 2020-21.

The volume of commercial building work is anticipated to hit $1.32 billion in 2020-21 before reverting back to levels more typical of past performance towards 2024-25.