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Australia’s Top Cities for Construction – Melbourne vs. Sydney


Melbourne and Sydney, in addition to being Australia’s most well-known and largest cities, are also world class destinations renowned for their beauty and lifestyles.

construction and building

The strong rivalry between Sydney and Melbourne is well documented with everything from sports teams to culture and even coffee being debated about whose is better.

The cities certainly each have much to offer. Sydney is often described as one of the most beautiful cities in the world with its stunning landmarks including: the Sydney Harbour, the Sydney Harbour Bridge, the Opera House, Manly and Bondi Beaches and the Blue Mountains. With its many beaches and vibrant nightlife, Sydney is cosmopolitan and chic. The city is also Australia’s financial hub and home to a large array of international companies who use Australia as a base for their operations in the region.

Melbourne’s attractions are more subtle, and less glitzy. The city abounds in parks and gardens, leafy suburbs, bay beaches, and the Yarra River. Melbourne is home to an F1 Grand Prix, and The Australian Open Tennis Tournament. Throughout the city there are beautiful streets, cafes & coffee shops, and an array of restaurants and cuisines to rival any city anywhere. Melbourne also has a strong and vibrant business sector and continues to attract commercial and residential business and investment.

It has been said that the main difference between the cities is that Sydney has more to see and Melbourne has more to do.

In terms of population and growth, Sydney has 4.9 million residents, a 1.7% growth rate and has added 703,000 people over the past ten years, and is Australia’s largest city. Melbourne has a population of 4.6 million people, and with a growth rate of 2.1% and having added 832,000 people over the last ten years, is expected to surpass Sydney and become Australia’s largest city in a few decades.

Residential Construction in Melbourne and Sydney

With the influx of so many new residents, housing costs in both cities have risen substantially over the past decade, and builders are doing their best to meet demand for new housing. In both cities, their centers have become expensive and many new residents are flocking to their outer suburbs causing a boom in these areas.

For more urban Sydney, because of the high price of single family houses even in the outer areas, it is mainly apartments that are in high demand. While in Melbourne both apartments and single family housing is highly sought. The Australian Financial Review reports that there are 20,000 residential properties currently under construction in Melbourne, with more than 10,000 within the central business district. As is always the case with this type of demand, there are great opportunities for businesses like Lofts Quarries, that provide construction building materials including sand and soil.

Commercial Construction in Sydney and Melbourne

Because of the residential apartment building boom in both cities, there is a squeeze on the building of commercial projects at the moment. This is causing great concern as new residents flock to both cities and employment growth continues. There will certainly be a need for more office towers going forward, and there will be a battle for space to build. In Sydney there is even a plan to restrict residential apartment development in favour of commercial projects.

The residential and commercial construction booms in both Sydney and Melbourne are predicted to continue at least through 2017 and potentially much longer if population growth continues at its current pace.



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