Economic briefing note on construction activity in September 2016

September 2016

Release date: 23 November 2016
Next release: 22 February 2017

In the quarter to September 2016, the value of total construction work done in Victoria decreased by $743 million (down 6.9 per cent). Over the same period New South Wales experienced a decrease of $271 million (down 2.1 per cent).

Victoria recorded a decrease in Victoria's residential building work done of $520 million (down 9.2 per cent), a decrease in non-residential building work done of $118 million (down 5.2 per cent) and a decrease in engineering construction work done of $104 million (down 3.6 per cent) in the September quarter 2016.

In the year to September 2016, Victoria has seen an increase in total construction work done of $93 million (up 0.9 per cent) while Australia has seen a decrease in total construction work done over the same period of $5746 million (down 11.1 per cent). 

Total construction by state

Total construction NSW VIC QLD SA WA TAS AUS
Total in September 2016 ($ million) 12,708 10,089 9668 22528372 642 46,148
Change in the quarter to September 2016, $ million (%) -271 (-2.1) -743 (-6.9) -17 (-0.2) -29 (-1.3) -1319 (-13.6) 29 (4.7) -2371 (-4.9)

Breakdown by construction type

Residential building

Residential building work done in Victoria and Australia This chart shows the value of residential building work done in chain volume measures for Victoria and Australia from September 2006 to September 2016 in billions of dollars.  In September 2006 the value of residential building work done in Victoria was $3.0 billion. Between September 2006 and December 2012 the value of residential building work done experienced an upwards growth trend, reaching $4.5 billion in December 2012. Between December 2012 and December 2013 the value of residential building work done experienced a downwards growth trend, falling to $4.0 billion in December 2013. Since December 2013 the value of residential building work done in Victoria has experienced an upwards growth trend and sits at $5.1 billion in September 2016.  In September 2006 the value of residential building work done in Australia was $12.4 billion. Between September 2006 and June 2010 the value of residential building work done experienced an upwards growth trend, reaching $14.3 billion in June 2010. Between June 2010 and June 2012 the value of residential building work done experienced a downwards growth trend, falling to $12.5 billion in June 2012. Since June 2012 the value of residential building work done in Australia has experienced an upwards growth trend and sits at $17.6 billion in September 2016. 

Period Victoria Australia
Total in September 216 ($ million) 5118 17,598
Change in the quarter to September 2016, $ million (%) -520 (-9.2) -554 (-3.1)
Change in the year to September 2016, $ million (%) 181 (3.7) 1050 (6.3)

Non-residential building

Non-residential building work done in Victoria and Australia This chart shows the value of non-residential building work done in chain volume measures for Victoria and Australia from September 2006 to September 2016 in billions of dollars.  In September 2006 the value of non-residential building work done in Victoria was $2.0 billion. Between September 2006 and June 2008 the value of non-residential building work done experienced an upwards growth trend, reaching $2.5 billion in June 2008. Between June 2008 and September 2009 the value of non-residential building work done experienced a downwards growth trend, falling to $2.0 billion in September 2009. Between September 2009 and June 2010 the value of non-residential building work done experienced an upwards growth trend, reaching $2.5 billion in June 2010. Between June 2010 and September 2012 the value of non-residential building work done experienced a downwards growth trend, falling to $2.0 billion in September 2012. Between September 2012 and March 2015 the value of non-residential building work done experienced an upwards growth trend, reaching $2.6 billion in March 2015. Since March 2015 the value of non-residential building work done in Victoria has experienced a downwards growth trend and sits at $2.1 billion in September 2016.  In September 2006 the value of non-residential building work done in Australia was $7.4 billion. Between September 2006 and March 2009 the value of non-residential building work done experienced an upwards growth trend, reaching $9.0 billion in March 2009. Between March 2009 and September 2009 the value of non-residential building work done experienced a downwards growth trend, falling to $8.0 billion in September 2009. Between September 2009 and September 2010 the value of non-residential building work done experienced an upwards growth trend, reaching $10.5 billion in September 2010. Between September 2010 and September 2012 the value of non-residential building work done experienced a downwards growth trend, falling to $8.3 billion in September 2012. Since September 2012 the value of non-residential building work done in Australia has experienced an upwards growth trend and sits at $8.3 billion in September 2016. 

Period Victoria Australia
Total in September 216 ($ million) 2142 8289
Change in the quarter to September 2016, $ million (%) -118 (-5.2) -1018 (-10.9)
Change in the year to September 2016, $ million (%) -337 (-13.6) -683 (-7.6)

Engineering construction

Engineering construction work done in Victoria and Australia  This chart shows the value of engineering construction work done in chain volume measures for Victoria and Australia from September 2006 to September 2016 in billions of dollars. In September 2006 the value of engineering construction work done in Victoria was $2.2 billion. Between September 2006 and December 2011 the value of engineering construction work done experienced an upwards growth trend, reaching $3.2 billion in December 2011. Between December 2011 and September 2014 the value of engineering construction work done experienced a downwards growth trend, falling to $2.4 billion in September 2014. Since September 2014 the value of engineering construction work done in Victoria has experienced an upwards growth trend and sits at $2.8 billion in September 2016.  In September 2006 the value of engineering construction work done in Australia was $14.2 billion. Between September 2006 and September 2012 the value of engineering construction work done experienced an upwards growth trend, reaching $34.8 billion in September 2012. Since September 2012  the value of engineering construction work done in Australia has experienced a downwards growth trend and sits at $20.3 billion in September 2016.

Period Victoria Australia
Total in September 216 ($ million) 2829 20,261
Change in the quarter to September 2016, $ million (%) -104 (-3.6) -800 (-3.8)
Change in the year to September 2016, $ million (%) 248 (9.6) -6113 (-23.2)

Non-residential construction

PeriodVictoriaAustralia
Total in September 2016 ($ million)497128,550
Change in the quarter to September 2016, $ million (%)-223 (-4.3)-1818 (-6.0)
Change in the year to September 2016, $ million (%)-88 (-1.7)-6796 (-19.2)

Total construction

Total construction work done in Victoria and Australia  This chart shows the value of total construction work done in chain volume measures for Victoria and Australia from September 2006 to September 2016 in billions of dollars. In September 2006 the value of total construction work done in Victoria was $7.3 billion. Between September 2006 and December 2012 the value of total construction work done experienced an upwards growth trend, reaching $9.7 billion in December 2012. Between December 2012 and September 2013 the value of total construction work done experienced a downwards growth trend, falling to $9.1 billion in September 2013. Since September 2013 the value of total construction work done in Victoria has experienced an upwards growth trend and sits at $10.1 billion in September 2016.  In September 2006 the value of total construction work done in Australia was $33.9 billion. Between September 2006 and September 2013 the value of total construction work done experienced an upwards growth trend, reaching $56.7 billion in September 2013. Since September 2013  the value of total construction work done in Australia has experienced a downwards growth trend and sits at $46.1 billion in September 2016.

Period Victoria Australia
Total in September 216 ($ million) 10,08946,148
Change in the quarter to September 2016, $ million (%) -743 (-6.9) -2371 (-4.9)
Change in the year to September 2016, $ million (%) 93 (0.9) -5746 (-11.1)

Source: Australian Bureau of Statistics (ABS), cat. no. 8755.0, Construction work done.

Contact

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

Page last updated: 9 December 2016