New industry data shows New South Wales has emerged as Australia’s strongest commercial construction market, with its project pipeline climbing to nearly $42 billion in the September quarter, its highest level in 18 months. According to The Australian Financial Review, the surge is largely driven by data centre development, major mixed-use precincts and renewed confidence across the hospitality and energy sectors.
Hubexo’s latest figures reveal a 48% jump in NSW projects in the concept or design-and-documentation phases, rising from $28.1 billion in June. Ashleigh Porter, APAC president at Hubexo, described NSW as the nation’s “digital-infrastructure engine room,” noting the state’s stable rates of project deferrals and abandonments, which provides developers with greater certainty as proposals advance into structured planning.
Two major developments highlight the momentum: a $5 billion, 400,000sqm six-building data centre at Kemps Creek for ISPT, and a $2.2 billion, three-building data centre in Glendenning scheduled to break ground in early 2027. The rapid rise in data-centre investment, fueled by surging AI demand, contributed 0.5 percentage points to Australia’s 2.9% increase in business investment in Q3.
While the uplift pushed Queensland’s pipeline to $23.4 billion, its highest level in more than a year, Porter noted that Australia is not entering a construction boom. Instead, previously shelved or deferred projects are re-entering the pipeline as cost pressures ease and market visibility improves.
Beyond digital infrastructure, large-scale mixed-use precincts are accelerating activity. Brisbane’s $3.44 billion Victoria Park masterplan, which will host major 2032 Olympics venues, is progressing, with Arup appointed principal contractor. Hospitality and energy projects are also supporting the pipeline, including Sydney’s $2 billion Novotel and Ibis hotels and multiple wind farm proposals across NSW.
A notable structural shift is reshaping project delivery: developers and contractors are increasingly sharing risk, moving away from fixed-price contracts that historically placed full cost exposure on builders. Earlier contractor involvement during concept and feasibility stages is creating more stable and deliverable project pathways.
However, Victoria continues to trail the nation. Its pipeline rose from $4 billion to $7 billion this quarter, well below its recent peak of $23.7 billion. Porter cites slow progress in planning reforms, with developers facing ongoing “red tape and hoops.”
Residential development is also expected to strengthen in 2026. On the Gold Coast, Aniko Group has fast-tracked the second tower of its luxury four-tower project, with apartments starting at nearly $1.4 million. The developer reports strong demand from local, interstate and international buyers, helping fuel momentum heading into the new year.
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