21 January 2026
Global leaders in construction market intelligence, Hubexo, have released their 2026 Construction Outlook Report, providing a clear lens on the recent performance of the Asia Pacific construction industry.
After several years shaped by volatility, cost escalation and capacity constraints, Australia’s construction industry is now entering 2026 in a reset phase, tempered by challenge yet guided by pragmatism.
With past events having reshaped the sector’s foundations, what emerges now is not a market in crisis, but one in recalibration: leaner, more deliberate, and increasingly defined by capacity and discipline over scale and speed.
Featuring analysis and industry sentiment from leaders across Australia, Hubexo’s Construction Outlook Report invited Mosaic Property Group’s Founder and Managing Director, Brook Monahan to share his insights.
Sharing his perspective on expectations for 2026, Monahan focused on the importance of resilience, strategic pipeline sequencing, and strengthening in-house capability—principles that underpin Mosaic’s approach.
As Monahan puts it, “Volatility is no longer the exception; it is the environment.
“We are preparing by carefully sequencing our pipeline… maintaining the strength of our balance sheet… and strengthening in-house capability so we can manage volatility rather than be exposed to it.
“For Mosaic, these dynamics reinforce the importance of disciplined feasibility, strong partnerships and forward‑leaning innovation,” he said.
With the national construction pipeline now gathering quiet momentum, early‑stage project values have begun strengthening, supported by easing inflation, improved consumer confidence and clearer policy settings.
Huxbexo’s report found the total value of construction commencements is projected to increase significantly from Q4 2025 to Q3 2026.
In terms of volume, the number of projects in 2026 is set to surpass previous levels, suggesting there will be a renewed momentum in residential development across the construction industry.
Looking ahead, as deferral and abandonment rates fall to low levels, and stabilisation occurs across most project categories, there is further signalling of a gradual rebound in residential starts.
This aligns with industry sentiment: many builders anticipate heavier workloads, while developers are planning further ahead to navigate lingering approval delays, capital access challenges and tighter financial scrutiny.
This mindset reinforces Mosaic’s commitment to thoughtful sequencing, risk‑aware delivery and long‑term stewardship of every project.
“On the delivery side, price volatility and subcontractor capacity remain highly unpredictable, particularly under the weight of major infrastructure projects in the lead-up to the 2032 Brisbane Olympics,” Monahan said.
While the industry is shifting toward more deliberate, strategically grounded delivery, labour availability remains the sector’s most significant constraint, particularly across Queensland and Western Australia, where shortages continue to impact timelines, pricing and delivery certainty.
Other most immediate risks lie in planning and land supply, where faster approvals and enabling greater density in the right locations are essential to meeting demand.
“The most impactful reform would be genuine planning efficiency—timely, consistent approvals that unlock higher-density housing in well-located areas, supported by the amenity and infrastructure needed to sustain a greater mix of housing types,” Monahan said.
As Australia moves through 2026, the direction is increasingly clear: there is growing confidence and collaboration remains essential – and risk is central factor in every decision.
Register to attend the webinar
Click here to attend the free webinar and hear from Brook Monahan and other industry leaders for a data-led insight into where Australia’s construction industry is heading in 2026.
- Date: Wednesday 4 February 2025
- Time: 11 AEDT / 10am AEST
- Duration: 45 minutes inclusive of Q&A
Review the report in full
Visit this link to read the full report from Hubexo.
What’s in the report?
- Pipeline Analysis: Trends in project proposals, deferrals, and commencements.
- Industry Sentiment: How developers, architects, and builders are responding to cost pressures, labour shortages, and planning delays.
- Key Themes: Sustainability, technology adoption, and collaborative contracting models shaping the next cycle.
- Government & Defence: Policy reforms and major programs influencing demand.
