That is according to analyst Deloitte Access Economics.

Deloitte's latest Investment Monitor report said commercial construction activity had continued to slow in Tasmania, and indicators were mixed.

"The value of work commenced grew over the past year, but the value of building approvals fell," the report said.

"In terms of projects, completion of the $250 million Living City urban renewal project at Devonport is expected next year."

It said $690 million of funding had been proposed for redevelopments at the Launceston General Hospital and the Royal Hobart Hospital.

There were $1 billion worth of commercial construction projects under way, with $3 billion worth being planned.

The numbers were similar for engineering construction.

Deloitte said Tasmanian engineering construction activity had stabilised, with strong growth in the transport and water supply sectors.

"The earlier completion of several renewable energy projects continues to weigh on activity, with the value of work done in the electricity industry falling by almost one third over the past year," it said.

"The value of work commenced also fell, with declines in the water supply industry offsetting gains elsewhere."

It noted funding of $100 million had been announced for West Tamar and East Tamar Hwy upgrades, $60 million for the Algona Interchange and Kingston Bypass and $50 million to upgrade the Arthur Hwy.