Australia’s construction industry is heading into 2026 with early-stage activity climbing, abandonment pressure easing, and a lift in commencements reshaping the national pipeline for the year ahead.
Findings from Hubexo’s Construction Outlook for 2026 draw on national project data from its project intelligence platform LeadManager, industry sentiment and insights from leaders across development, architecture and construction to give Australian stakeholders a data-driven read on what’s shifting across the country.
The annual report tracks activity across every major sector and state—detailing what’s entering and exiting the pipeline, where delays are forming, and how momentum is shifting across residential, commercial & hospitality, community & public buildings, industrial, infrastructure & transport, and energy & resources.
The Pipeline
Early-stage project values have surged more than 60%, driven by energy and resources, residential and a strengthening commercial and hospitality pipeline. Project numbers have been rising steadily since late 2023, signalling confidence returning across the market.
Deferrals and abandonments have softened, at 1.6% and 1.5%, respectively. Infrastructure, industrial and transport projects show exceptional resilience, with abandonment rates close to zero. Residential abandonments sit at 3.1%, reflecting feasibility pressure.
Construction commencements are forecast to rise sharply from late 2025 into 2026, with energy and resources accounting for 41% of the value of all forecasted commencements. Residential, representing around 20%, is expected to strengthen supported by rate stability and persistent demand.
Market Sentiment & Insights
Confidence is lifting with 60% of builders surveyed expecting more work in 2026, while developers are planning further ahead, with over half mapping projects up to two years out. Builders remain focused on 6– 12 month cycles as they manage near-term risk and capacity.
Labour remains the tightest constraint. Financial pressure also persists—inflation, market insecurity, rising supply costs and interest rates continue to shape feasibility and project timing.
Across exclusive interviews with leading Australian built environment stakeholders, the message is consistent: firms want technology that reduces risk and fragmentation. Builders highlight tools that lift certainty, quality and safety, while architects point to the need for stronger digital integration to manage complexity and compliance.
Hubexo Commentary
“From where we sit—tracking projects as they enter, stall and break ground—the shifts in the pipeline are unmistakable. Early-stage values are up more than 60% on the previous quarter. Deferral and abandonment rates have softened. Now that prices, rates and supply chains have steadied, momentum is building across 2026.”
— Ashleigh Porter, President, APAC, Hubexo“What’s coming is a 2026 delivery wave as projects finally break ground—but the limited labour pool is struggling to keep pace. That tension defines this cycle. Firms aren’t debating technology anymore; they’re demanding tools that cut risk and fragmentation. Opportunities are out there, but they won’t be won with yesterday’s systems.”
— Ashleigh Porter, President, APAC, Hubexo