Research and Markets: Growth in the Building Construction Market in Australia Is Poised To Pick Up Momentum in 2010 Due To the Kick-In Effect of the Governments Stimulus Package

DUBLIN--(BUSINESS WIRE)--Research and Markets(http://www.researchandmarkets.com/research/cd964a/strategic_analysis) has announced the addition of Frost & Sullivan's new report "Strategic Analysis of Building Construction Market in Australia" to their offering.

“The expanding population in Australia will spur growth in the residential building segment, triggering both urban and rural development”

This research service covers the Australian building construction market. It includes key research findings, total market size for building construction, market trends, competitive landscape, strategic conclusions, and profiles of key market participants.

This Frost & Sullivan research service titled Strategic Analysis of Building Construction Market in Australia provides an in-depth analysis of the market drivers and restraints, industry structure, and competitive environment besides dealing with the challenges faced by market participants. In this research, Frost & Sullivan's expert analysts thoroughly examine the following: residential and non-residential building market.

Market Overview

Green Concepts and Stimulus Packages Pave Way to Progress for the Building Construction Market in Australia

The building construction market in Australia experienced a downslide during 2008 and 2009, however, growth is poised to pick up momentum in 2010 due to the kick-in effect of the governments stimulus package. Government initiatives have helped cushion the impact of the global economic crisis. The building construction markets activities are interconnected with other sectors of the Australian economy, such as manufacturing, wholesale trade, retail trade, and finance and insurance industries. "The expanding population in Australia will spur growth in the residential building segment, triggering both urban and rural development," notes the analyst of this research service. "Growth in the residential sector in the next few years will be driven by the increase in the "First Home Owners Grant" and the low interest rates." Low-interest rates have resulted in increased home purchases. Constructing green and energy-efficient buildings is a major technological trend in the market as the Australian Government is determined to cut down on greenhouse gas emissions.

Challenges faced by market participants include unstable prices of building materials, risk management, and bottlenecks in the approval process. Delays in the approval process have led to reduced building starts. Other restraining factors include rising prices of building materials and the increasing unemployment rate. Moreover, major contractors are required to manage a range of risks, which are passed to them in commercial terms. The sluggish Australian economy in 2008 and 2009 has weakened the manufacturing sector, resulting in fewer commercial and industrial building projects. It is not surprising to see tighter credit regulation by tenders and reduced financing options for property developers. This has resulted in lower investments from the private sector.

"To gain market share and improve market position in the building construction market, participants in this space must have best practices in the key focus areas in the market," says the analyst. "To move business prospects forward, the areas that require emphasis are green buildings, energy efficient buildings, smart buildings, and prefabrication practices." Best practices must be adopted in building components and systems such as integrated facilities management (IFM), heating, ventilating, and cooling (HVAC), building automation system (BAS), and lighting. Additionally, prefabrication practice is an emerging trend in Australia. The Green Building Council of Australia (GBCA) has developed a voluntary "Green Star" rating system, used to measure the environmental performance of buildings. Categories assessed are indoor air quality, energy transport, water, materials, land use, ecology, emissions, and innovation. As mitigation of greenhouse gas emissions is high on the agenda of nations worldwide, it will be advantageous for participants in the building construction market to ensure that their buildings meet or even exceed the minimum standards that are set by regulatory bodies in Australia.

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research: