Commercial companies face a tough commercial market over the next two years. BIS Shrapnel forecasts non-residential building starts could hit their lowest levels since 2005-06.

New data forecasts national non-residential building starts will fall 14 per cent in 2010-11 and 5 per cent 2011-12 as the government stimulus packages wind down. The findings echo the concerns of the buildings materials groups such as CSR.

Melbourne however is growing commercially as more offices are built to house white collar workers. Melbourne rapid population growth is set to make the city bigger than Sydney by 2037.

BIS Shrapnel is nore optimistic about residential house starts, with forecasted construction to grow by 7 per cent next year compared to 16 per cent this year.

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