Construction forecasts show serious shortfalls

Construction forecasts show serious shortfallsNew forecasts released by the Australian Construction Industry Forum (ACIF) show that by 2020 serious shortfalls or oversupply are expected for key building assets in 21 locations around the country.According to ACIF’s Demand Driven Forecasts 2014, sectors that will be affected include schools, hospitals and office, retail and industrial space, as well as housing.While some regions will be struggling to meet the needs of the community, other regions will see an oversupply of assets as the projected population will have a reduced need for some building types.Highlights from the Demand Driven Forecasts include:Demand for hospital beds in Sydney is anticipated to outstrip supply towards the end of the decade.The project pipeline for retail space in Melbourne is anticipated to taper off in the medium term, at which point demand will exceed supply.Several new office developments in the pipeline for Brisbane will result in an excess supply of office space in the short- to medium-term future.Demand for houses in Adelaide has reduced this year but will steadily rise through to 2020. The excess demand for housing will decrease in the short to medium term; an excess supply in the market is predicted.Investment in Perth industrial space is limited in the medium- to long-term future, resulting in excess demand for industrial space by period’s end.Demand for classrooms in Canberra is expected to outstrip supply for much of the projection period.”Peering into the looking glass of the population we expect in 21 regions, we can see how their needs are set to change.Authorities have the chance now to plan for construction or re-use of community and other assets,” said Peter Barda, executive director of ACIF.More information about the Demand Driven Forecasts is available at: www.acif.com.au/forecasts/demand-driven-forecasts