The South Australian economy has continued to perform better when compared to most interstate counterparts. The States’ population has grown steadily due to improvement in overseas migration and the return of international students. Notwithstanding, employment growth has been strong, economic growth has slowed and is expected to remain so for the 2024 - 2025 period.

While there are signs that inflation has moderated, it still remains above the target set by the RBA. This has impacted project feasibility, causing projects to be put on hold, or shelved altogether. This has affected both the private and public sectors.

Although approval for single residential dwellings has declined, the abolition of Stamp Duty will assist greatly. The implementation of the new National Construction Code on new residential buildings from the 1st October 2024 will impact on these savings.

The medium density sector remains steady, with new starts in the pipeline, notwithstanding the arduous approval process. Bank funding criteria has improved due to the government's policy in driving the housing supply. Accordingly, some developers are focusing on opportunities in the social and affordable housing sector. Approval for the high-rise sector has peaked, with construction starts subject to market conditions and consumer appetite. The non-residential sector has mixed results, with industrial growth being very strong, in providing a range of facilities to accommodate material/equipment suppliers, e-commerce, storage and manufacturing enterprises. Infrastructure, in particular power, sewer and water supply to new developments is becoming problematic. This is impacting on the handover of completed projects.

Anecdotal feedback from contractors indicates that subcontractors are showing greater interest in tendering for future work. Labour disruption in certain sectors is still an issue, but has improved from the previous period. Material supply has improved significantly, with prices stabilising.

Detailed data for each Australian state can be found in the 2024 Handbook & Cost Guide.