Large-scale projects that usually set the pace for the market are slowing and some are effectively on ice. Real estate agents talk openly about a “go-slow” and even a “freeze” at the top end of town.
An industry sentiment survey by Procore and the Property Council this week shows how quickly the mood has turned, linking geopolitical uncertainty to a steep fall in confidence. The survey points to residential developers and builders pulling back on plans even where projects already have planning approvals.
Rising construction costs and supply‑chain friction are compounding the caution, making the economics of new projects much harder to stack up. Property Council leadership argues that without a clear lift in confidence the pipeline of new homes will not move from paper to construction sites.
Developers are battling higher materials prices, more expensive labour and ongoing delays in getting key components to site, all of which are eroding project margins. Many builders face the dilemma of either pushing ahead on tighter returns or waiting for costs to normalise, which slows delivery of new housing stock.
Supply‑chain pressures that eased slightly after the pandemic now flare again when global conflict disrupts shipping routes and energy prices. Industry advisers say even projects considered relatively safe such as industrial and commercial developments are feeling the same squeeze on feasibility.
Property Council executives warn that confidence functions as the real fuel for the sector, determining whether banks, investors and buyers back projects at scale. Without that confidence, large developments across industrial, commercial and residential markets are more likely to stall than to start.
The slowdown at the “big end of town” looks set to ripple through contractors, suppliers and local communities that depend on construction jobs. Industry voices keep returning to the same concern, that unless sentiment recovers Australia’s housing supply ambitions risk colliding with the hard reality of fewer projects breaking ground.
