Xin Hua Cai Jing·2026-01-12 09:33Core Viewpoint - The Australian construction industry is under structural transformation pressure due to ongoing housing supply shortages and high construction costs, leading to increased interest in prefabricated construction methods, which are seen as a potential solution to improve efficiency and reduce costs [1][4]. Group 1: Housing Supply and Demand - The Australian housing market is experiencing structural recovery signs due to long-term supply shortages, with an estimated 177,000 new homes expected to be completed in 2024 against a demand of 223,000 homes, resulting in a projected shortfall of 262,000 homes [2]. - The National Housing Supply and Affordability Council anticipates that only 938,000 new homes will be built from July 2024 to June 2029, falling short of the target of 1.2 million homes [2]. Group 2: Construction Costs and Challenges - Residential construction costs in Australia have risen by approximately 2.5% year-on-year, marking the lowest increase in over a decade, yet the cumulative increase since the COVID-19 pandemic exceeds 30%, impacting project cash flow and feasibility [2][3]. - Key challenges in the Australian housing supply include rising labor costs, low on-site construction efficiency, and unstable material supply, compounded by a shortage of skilled labor [3]. Group 3: Prefabricated Construction as a Solution - Prefabricated construction is viewed as a viable option to alleviate housing supply pressures, with modular construction potentially reducing overall costs by about 20% and shortening construction timelines [4]. - The Australian government is promoting prefabricated and modular housing as advanced construction methods that could significantly enhance housing supply, indicating a shift in policy discussions [4]. Group 4: Chinese Enterprises in the Market - Several Chinese enterprises are accelerating their entry into the Australian prefabricated construction market, focusing on modular and panelized construction methods [5][6]. - China State Construction Engineering Corporation is adapting its products to meet Australian standards, emphasizing compliance and certification processes as critical for market entry [5]. Group 5: Challenges in Adoption of New Technologies - Despite increasing demand for prefabricated construction, the Australian market is characterized by high regulatory standards and complex certification processes, which can hinder the entry of new technologies [6][8]. - There is a need for Chinese companies to understand local regulations and avoid simply replicating domestic practices, as the Australian construction industry has a strong inertia towards traditional methods [7][9].