<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=442043613279730&amp;ev=PageView&amp;noscript=1">

Cubit Estimating Cloud: Anywhere, Anytime Estimating

Work anytime, anywhere with a fully managed cloud hosted solution that will transform your business. In the ever-evolving landscape of construction management, staying ahead means embracing innovation and technology. We’ve been committed to developing construc.....

David Cartwright

Sydney vs. Melbourne: Construction Trends

Jason Hook

Head of Sales and Marketing

Oct 3, 2016 8:04:00 AM

Sydney and Melbourne share a healthy rivalry in sport and culture, and a booming rate of population growth. But what about the state of construction in Australia’s two largest cities?

Below we explore how population trends will impact the future of residential and commercial construction in Sydney and Melbourne.

 

Sydney’s Booming Population Growth

It’s a two-horse race for Australia’s biggest city. Sydney continues to experience solid growth in residential property projects, with forecasts showing a strong market in the years ahead. Logically, population growth means rising demand, and Sydney has that in spades. According to .id The Population Experts, the municipality of Camden in Sydney’s south-west saw Australia’s fastest population growth in 2014-2015 - at a rate of 7.6%.

“It’s often recorded the fastest growth rate in Sydney, but the rate and volume has increased considerably in the last couple of years,” says Simone Alexander of .id.

“There are numerous development fronts in Camden as evidenced by the rapid growth of new housing estates in Gregory Hills, Oran Park and Spring Farm. There is considerable scope for future residential development across the northern part of the municipality well into the future,” she says. 

Sydney and Melbourne construction trends 

Melbourne: Australia’s Biggest City by 2046? 

With a population of roughly 400,000 fewer people than Sydney, Melbourne is Australia’s second largest city. However, according to Glenn Capuano of .id, if current growth rates stay the same it will overtake Sydney by 2046.

Tender tips, marketing tips, technology for builders.

“In the last 10 years, Melbourne has added 832,124 people, while Sydney has added 703,407 people. Both cities had a growth rate above the national average in 2014-2015, but Melbourne’s was 2.1% and Sydney’s 1.7%,” he says.

 

Residential Construction in Sydney and Melbourne

In addition to their similar population growth, construction trends in Sydney and Melbourne follow a similar trend in residential development. Melbourne has consistently demonstrated high growth in fringe suburbs in particular, while Sydney shows high growth evenly across fringe areas and established suburbs. According to Simone Alexander, Sydney’s growth pattern reflects a strong trend in apartment building.

Similarly, The Australian Financial Review reports that there are 20,000 residential properties currently under construction in Melbourne, with more than 10,000 within the CBD.

Sydney commercial development

Commercial Construction in Sydney and Melbourne

Melbourne’s residential high-rise boom in the inner city has left little room for commercial projects. There are concerns this residential construction boom will fail to accommodate for the city’s expected employment growth.

A similar scenario is playing out in Sydney, where there are plans to restrict residential apartment development in favour of commercial projects.

  

Eco-friendly Innovations

The green building movement is in full flight in both cities. The famous ‘vertical garden’ at Sydney’s Central Park development is the highest in the world. Green roofs and living walls that reflect solar radiation, insular and improve air quality have become popular examples of eco-friendly construction.

In Melbourne, the proposed 60-storey Sol Invictus residential skyscraper will be wrapped in solar cells to provide residents with off-the-grid power.

For more examples of how eco-friendly construction is transforming Australia’s building industry, download your free eBook by clicking below:

12 tips to building eco-friendly

Cubit Estimating_logo_Blue

Tools for pros.
Prices for everyone.

We understand estimating can be complex and tiring. We're here to make it much easier.

Get your 14-day free trial of Cubit the natural estimating solution.

14-Day Free Trial

How to Articles

How the Tax Man can benefit your business

It’s that time of year again when it’s time to get all your financial ...

How to Win Construction Leads on Social Media

Attracting customers to your construction business is a continuous pro...

Product Updates

Cubit Select Update: Delivering New Improvements and Enhancements

March 2024 We’ve been working hard to implement some new improvements ...

Cubit Estimating Release: Delivering a range of improvements to enhance your work

Following the release of our highly anticipated collaboration features...