Apartment building and a larger pipeline of infrastructure activity are expected to drive a turnaround in construction work in Australia in the next financial year.

The latest Construction Outlook survey by the Australian Industry Group (Ai Group) and the Australian Constructors Association (ACA) showed the value of work was set to rise by 4.7 per cent in the 2016/17 fiscal year.

But that will follow an expected fall of 2.4 per cent in the value of work for the current financial year.

The survey showed multi-level apartment development was set to show further strong growth, particularly in Sydney, Melbourne and Brisbane.

Ai Group chief executive Innes Willox said the result was very encouraging.

"It's a promising outlook of a more rapid rebound than had previously been expected," he said.

For apartment construction, growth of 13.7 per cent is expected in 2015/16, followed by a further 8.1 per cent increase in 2016/17.

It comes after a 15.9 per cent increase in the last financial year.

Engineering construction is forecast to fall by 5.2 per cent in the current financial year because of continuing weakness in mining projects.

But a strong boost from road and rail projects from the second half of next year is expected to drive a 4.8 per cent boost in the value of work in 2016/17.

Figures show shift from mining to building works: Ai Group chief

Mr Willox said the figures suggested the expected shift in the economy from mining-related activity to building works was gathering pace.

"It may not pick up all of the slack, but it will certainly do a lot of the heavy lifting to pick up some of that slack, if some of that construction work around residential dwellings and infrastructure work takes place as is expected," he said.

The total value of commercial construction work, including offices, retail and industrial premises, is on track to gradually recover in the next two years.

After a fall of 2 per cent in the last financial year, that sector is tipped to grow by 2.3 per cent this fiscal year and 4.3 per cent in the following 12 months.

ACA executive director Lindsay Le Compte said the outlook was a welcome reprieve from a long period of weak activity for the construction industry.

"The improving trend identified through the survey reflects a growing confidence in the capacity of the industry to recover from the setbacks associated with the slowdown in the resources sector over recent years," he said.

"Future growth will be further supported through the implementation of mega infrastructure projects, that will act as catalysts for additional commercial and residential development, associated with the urban renewal policies of the federal and state governments."