Economic briefing note on building work done in March 2016

March 2016

Release date: 13 July 2016
Next release: 12 October 2016

Building work done in Victoria decreased in the March quarter 2016 (down 1.7 per cent) to $7171 million. This decrease comprised a decrease in non-residential building work done (down 10.4 per cent) to $2118 million, and was partially offset by an increase in residential building work done (up 2.5 per cent) to $5053 million. Industrial buildings accounted for the largest portion of the decline in non-residential building value, down 32.7 per cent in the March quarter 2016. This decline was led by falls in factories and other secondary productions buildings (down 50.9 per cent), agricultural and aquacultural buildings (down 38.3 per cent), and warehouses (excluding produce) (down 26.3 per cent).

In the March quarter 2016, Victoria's share of national total building value decreased to 28.5 per cent (down from 28.8 per cent in the December quarter 2015).

Nationally building work done decreased in the March quarter 2016 to $25,188 million (down 0.7 per cent). Victoria (down 1.7 per cent) experienced the third largest decrease in building work done, behind Western Australia (down 13.6 per cent), and South Australia (down 4.0 per cent). This national decrease was partially offset by Tasmania (up 5.9 per cent), New South Wales (up 4.0 per cent), and Queensland (up 2.9 per cent).

In the year to March 2016, Australia has seen an increase in total building work done of $410 million (up 1.7 per cent) and Victoria has seen a decrease in total building work done over the same period of $62 million (down 0.9 per cent).

Building work done

Building work done NSW VIC QLD SA WA TAS AUS
Total building work done March quarter ($ million) 7683 7171 4933 1166 3031 342 25,188
Change since December quarter 2015, $ million (%) 295 (4.0) -121 (-1.7) 141 (2.9) -48 (-4.0) -476 (-13.6) 19 (5.9) -166 (-0.7)
Annual change in the year to March quarter 2016, $ million (%) 879 (12.9) -62 (-0.9) 353 (7.7) -184 (-13.6) -544 (-15.2) 35 (11.5) 410 (1.7)
Non-residential building value March quarter 2016 ($ million) 2642 2118 1727 464 1027 165 8512
Change since December quarter 2015, $ million (%) -5 (-0.2) -246 (-10.4) 83 (5.0) -80 (-14.7) -175 (-14.6) 35 (27.3) -440 (-4.9)
Annual change in the year to March quarter 2016, $ million (%) 3 (0.1) -421 (-16.6) 140 (8.8) -111 (-19.3) -221 (-17.7) 51 (44.5) -538 (-5.9)
Residential building value March quarter 2016 ($ million) 5041 5053 3206 702 2003 177 16,675
Change since December quarter 2015, $ million (%) 300 (6.3) 125 (2.5) 58 (1.8) 31 (4.7) -300 (-13.0) -16 (-8.5) 274 (1.7)
Annual change in the year to March quarter 2016, $ million (%) 877 (21.1) 358 (7.6) 212 (7.1) -74 (-9.5) -323 (-13.9) -16 (-8.1) 949 (6.0)

Residential building work done

This chart shows the value of residential building work done in Victoria and Australia between March 2006 and March 2016. Victoria and Australia have followed similar trends over this period. The value of residential building work done in Victoria was $2.8 billion in the March quarter 2006. Between March quarter 2006 and September quarter 2011 the value of residential building work done followed an upwards growth pattern, reaching $4.3 billion in September quarter 2011. Between September quarter 2011 and September quarter 2014 the value of building work done trended slightly downwards, reaching $4.1 billion in September quarter 2014. Since September quarter 2014, the value of residential building work done in Victoria has trended upwards, reaching $5.1 billion in March 2016. The value of residential building work done in Australia was $11.7 billion in the March quarter 2006. Between March quarter 2006 and June quarter 2010 the value of residential building work done followed an upwards growth pattern, reaching $13.9 billion in June quarter 2010. Between June quarter 2010 and June quarter 2012 the value of building work done trended slightly downwards, reaching $12.0 billion in June quarter 2012. Since June quarter 2012, the value of residential building work done in Australia has trended upwards, reaching $16.7 billion in March 2016.

Date range Victoria ($ billion) Australia ($ billion)
March 2006 2.8 11.7
June 2010 n/a 13.9
September 2011 4.3 n/a
June 2012 n/a 12.0
September 2014 4.1 n/a
March 2016 5.1 16.7

Non-residential building work done

This chart shows the value of non-residential building work done in Victoria and Australia between March 2006 and March 2016. Victoria and Australia have followed similar trends over this period. The value of non-residential building work done in Victoria was $1.8 billion in the March quarter 2006. Between March quarter 2006 and June quarter 2010 the value of non-residential building work done followed an upwards growth pattern, reaching $2.4 billion in June quarter 2010. Between June quarter 2010 and September quarter 2012 the value of building work done trended slightly downwards, reaching $2.0 billion in September quarter 2012. Between September quarter 2012 and March quarter 2015, the value of non-residential building work done in Victoria trended upwards, reaching $2.5 billion in March quarter 2015. Since March quarter 2015 the value of non-residential building work done in Victoria has trended downwards, reaching $2.1 billion in March quarter 2016. The value of non-residential building work done in Australia was $6.8 billion in the March quarter 2006. Between March quarter 2006 and June quarter 2010 the value of non-residential building work done followed an upwards growth pattern, reaching $10.3 billion in June quarter 2010. Between June quarter 2010 and September quarter 2012 the value of building work done trended slightly downwards, reaching $8.1 billion in September quarter 2012. Between September quarter 2012 and December quarter 2015, the value of non-residential building work done in Australia trended upwards, reaching $9.0 billion in December quarter 2015. In March quarter 2016 the value of non-residential building work done in Australia was $8.5 billion.

Date range Victoria ($ billion) Australia ($ billion)
March 2006 1.8 6.8
June 2010 2.4 10.3
September 2012 2.0 8.1
March 2015 2.5 n/a
December 2015 n/a 9.0
March 2016 2.1 8.5

Source: Australian Bureau of Statistics (ABS), cat. no. 8752.0 – Construction work done

Contact

Please email economic.analysis@ecodev.vic.gov.au for more information.

Page last updated: 23 September 2016