Rider Levett Bucknall’s Q2 2025 update highlights cautious sector sentiment
The latest Construction Market Update from Rider Levett Bucknall (RLB) presents a subdued outlook for Australia’s construction industry heading into the second half of 2025. The report highlights how ongoing global instability and persistent local constraints are disrupting project delivery, inflating costs, and reducing investor appetite across the sector.
Global instability and supply chain issues drive uncertainty
RLB’s analysis points to global economic and geopolitical instability as key factors fuelling market uncertainty. Supply chain disruptions and fluctuating material prices continue to hinder project timelines and add complexity to procurement, making it more challenging for builders and developers to plan and deliver new projects on schedule.
Local constraints add pressure on project delivery and costs
Domestically, the industry is grappling with labour shortages, regulatory delays, and rising compliance costs. These local challenges are compounding global pressures, leading to increased construction costs and a more cautious approach to new investments and project launches.
Investment appetite dampened as market weighs risks
With both global and local factors at play, investment appetite in the construction sector remains subdued. Developers and financiers are taking a more conservative stance, prioritising risk management and financial resilience over rapid expansion.
Sector outlook: Vigilance and adaptability required
As Australia’s construction industry navigates the remainder of 2025, RLB recommends a focus on vigilance, adaptability, and proactive risk assessment. Industry leaders are urged to monitor evolving conditions closely and to adopt flexible strategies to manage ongoing disruptions.
