Australia | Flooding to further stretch construction industry capacity

The 2011 Brisbane floods resulted in an estimated $2.38 billion in damages, with over 28,000 homes impacted. It acted to meaningfully drag on work done in Q1, with activity being recouped later that year. The full extent of the current floods is still unknown. Although floodwaters did not reach the peaks experienced in 2011, the effects are likely to be more widespread and the rebuild effort more protracted.

What you will learn:

  • Intense rainfall has caused considerable flooding in South East Queensland and Coastal New South Wales, with early estimates indicating at least 30,000 homes have been affected.
  • The floods will place increased pressure on the dwelling stock, further squeezing already tight rental markets. In addition, the rebuild effort will add to an already significant mismatch between the supply and demand of construction inputs.
  • The floods highlight long-term downside risk arising from increasing insurance costs.

Topics: Australia, Climate Change, Construction, Macroeconomics

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