Canberra's construction sector has largely been sheltered from the major impacts of coronavirus experienced in the industry, according to a new report.
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The report by quantity surveyor Rider Levett Bucknall for the second quarter of 2020 said federal and territory workflow had meant the ACT had fared well during the coronavirus shutdown compared to other states and territories, which were more reliant on private-sector projects.
However, experts in the sector say they're bracing for downturns in the industry in the coming months as the long-term economic impact of COVID-19 becomes clearer.
According to the report, Canberra had the largest increase in tender prices for construction projects, rising by 3 per cent compared to the last quarter of 2019.
Activity on residential construction projects rose by more than 10 per cent to almost $2 billion, the only major Australian city profiled in the report to record a positive growth.
However, activity on non-residential projects declined by 14 per cent, while engineering works fell by 25 per cent.
Despite the downturn, the number of cranes in Canberra's skies increased.
In the past six months, an extra 10 cranes were added to the ACT while eight were removed with a total of 27 cranes active in Canberra.
Rider Levett Bucknall Canberra director Mark Shappe said he was surprised by the report's findings.
"The Canberra market has been protected from the volatility of the bigger construction markets like Sydney or Melbourne," Mr Shappe said.
"Government projects haven't slowed down, and if anything, the tap has been turned up wider, so we've noticed more inquiries from the government to stimulate the sector, and in Canberra, we're more sheltered from the effects of the virus."
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The report found just one construction project in Canberra was suspended during the past quarter during the pandemic, but was mainly due to cash flow re-profiling.
Both federal and territory governments have outlined plans to drive more work into the construction sector as the pandemic continues.
Mr Shappe said while Canberra's construction industry had weathered the coronavirus fairly well, upcoming quarters were likely to bring with it a drop in construction activity in the area.
"Government stimulus has helped to smooth the drop in activity in Canberra, but ultimately, in the long term, there will be a slow down," he said.
"Canberra wasn't hit as hard, but in quarter three and four of this year, we are expecting a drop in activity."
Master Builders ACT chief executive Michael Hopkins said the number of jobs in the Canberra construction sector had fallen by more than 6 per cent since February this year.
"The worry is that the downturn will continue for months, or even years," Mr Hopkins said.
"While hospitality and other retail sectors saw a sharp drop in employment, the eased restrictions means employment is starting to return. In the construction sector, it's continuing to decline."
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The falling number of building approval figures in Canberra was also a cause for concern for Mr Hopkins.
Figures from the Australian Bureau of Statistics showed just nine unit and apartment dwellings were approved in May this year.
That figure was the lowest number of monthly approvals since January 2012.
"We've been hearing from other builders who are more reliant on private sector clients that contracts are being cancelled or postponed because of the economic uncertainty," he said.