Futurebuild is proud to support Hubexo’s Construction Outlook Report with the Sentiment Survey.
Australia’s built environment enters 2027 against a rapidly evolving backdrop. The Construction Outlook maps how Australia’s building and infrastructure pipeline has evolved since Q2 2024 at national, state and sector levels. Drawing on Hubexo’s proprietary software, it tracks projects entering, blocking, and exiting the pipeline, with data current to Q2 2026 and commencement forecasts to Q2 2027. That data is deepened by a nationwide Sentiment Survey, capturing how firms are responding to cost and labour pressures, tightening finance and shifting demand.
New projects continue to enter the pipeline, deferral and abandonment remain contained, and both the value and number of commencements are forecast to strengthen.
Entering the Pipeline
- The value of new project proposals declined just 1% quarter-on-quarter in Q2 2026 while the average number of projects continued to rise.
- Energy and resources accounted for approximately 36% of new proposal value, with residential, and commercial and hospitality contributing a further 45%.
Blockages in the Pipeline
- Relatively few projects are leaving the pipeline, with national deferral declining to 1.5% in Q2 2026 and abandonment at 1.3%.
- Residential recorded the highest national abandonment rate at 2.7%, rising to 5.0% in VIC.
A large pipeline does not guarantee delivery.
Exiting the Pipeline & Forecasts
- Energy and resources is expected to account for approximately 36.8% of commencement value, industrial, infrastructure and transport 25.6% and residential 20.1%.
- NSW/ACT, VIC, QLD and WA are forecast to represent around 87% of the total commencement value, with NSW/ACT and QLD alone more than two-thirds of that.
Sentiment Survey
- Expectations for 2027 are steady rather than bullish. 46% expect the same volume of work and 42% expect more, while only 12% are bracing for a decline, so optimism still comfortably outweighs pessimism.
- Growth and expansion is now the leading priority for every group, strengthening to 62% for builders.
- Delays are again the dominant project challenge and worsening for two groups: 70% of developers report this challenge, up 15 points, and 78% of builders, up ten.
- New work remains relationship driven, with repeat clients leading at 70% and referrals second at 59%.
- Construction insolvencies fell to 3,472 companies in FY2025–26, down from 3,596 the year prior.
Technology & Sustainability
- The Sentiment Survey’s central finding on AI is that 40% of respondents do not expect it to impact productivity over the next five years.
- While 34% describe sustainability as not important, only 4% employ no sustainability measures at all.
- Energy efficiency remains the dominant measure at 77%, unchanged from 2025.
In their words
“The market feels both buoyant and constrained at the same time.”
Emma Bedford, General Manager, Connected
The Common Message
The common message is that 2027 will be defined by conversion. Australia has no shortage of projects, or of demand for housing, infrastructure, energy and digital assets; what it lacks is straightforward paths from pipeline to site. Projects with strong demand, secure capital and realistic delivery strategies will progress, while those at the margins of feasibility face redesign, repricing or delay.
Source: Hubexo, Construction Outlook 2027 | Australia
