The size of Australia's commercial building market is expected to rise across the next 12 months before reverting to lower levels, according to forecasts from Master Builders Australia.

Data from the association shows the volume of commercial building across Australia is expected to total $45.75 billion during 2018/19, an increase of 8 per cent on the previous year.

While a favourable economic backdrop is predicted to propel commercial building forward by another 6.5 per cent during 2019/20, Master Builders projects the size of commercial building market to be 8.9 per cent smaller than its 2018/19 total by 2023/24.

At a glance:

• Master Builders Australia has released a new forecast for the country's commercial building sector, predicting a rise in volume across the next 12 months before a fall in 2023/24.
• According to the association, the segments to see the toughest conditions over the next few years include building for accommodation, offices and education.
• The segments set for healthy growth going forward include retail/wholesale, transport buildings and health facilities. 

Chief Economist Shane Garrett said commercial building had been a "bit of a dark horse" across the last few years as it has risen to reach its highest level on record.

“Demand for commercial building projects has been whetted by the environment of exceptionally low-interest rates," he said.

“The segments to see the toughest conditions over the next few years include building for accommodation, offices and education.

"These are the parts of the market which generally performed best over recent years.

“It is not all bad news however and several segments of commercial building are set for healthy growth over the period to 2023/24, including retail/wholesale, transport buildings and health facilities,” he said. 

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