Economic briefing note on construction activity in June 2016

June 2016

Release date: 24 August 2016
Next release: 23 November 2016

In the quarter to June 2016, the value of total construction work done in Victoria increased by $521 million (up 5.2 per cent). Over the same period New South Wales experienced a decrease of $159 million (down 1.3 per cent).

Victoria recorded an increase in Victoria's residential building work done of $304 million (up 6.0 per cent), an increase in non-residential building work done of $64 million (up 3.0 per cent) and an increase in engineering construction work done of $153 million (up 5.5 per cent) in the June quarter 2016.

In the year to June 2016, Victoria has seen an increase in total construction work done of $939 million (up 9.8 per cent) while Australia has seen a decrease in total construction work done over the same period of $5629 million (down 10.6 per cent).

Total construction by state

Total construction NSW VIC QLD SA WA TAS AUS
Total in June 2016 ($ million) 12,144 10,562 9470 2381 9769 603 47,419
Change in the quarter to June 2016, $ million (%) -159 (-1.3) 521 (5.2) 245 (2.7) 3 (0.1) -2293 (-19.0) -1 (-0.4) -1801 (-3.7)

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 June 2006 to June 2016 in billions of dollars.  In June 2006 the value of residential building work done in Victoria was $2.9 billion. Between June 2006 and December 2012 the value of residential building work done experienced an upwards growth trend, reaching $4.3 billion in December 2012. Between December 2012 and December 2013 the value of residential building work done experienced a downwards growth trend, falling to $3.8 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 $5.4 billion in June 2016.  In June 2006 the value of residential building work done in Australia was $12.1 billion. Between June 2006 and June 2010 the value of residential building work done experienced an upwards growth trend, reaching $13.9 billion in June 2010. Between June 2010 and June 2012 the value of residential building work done experienced a downwards growth trend, falling to $12.0 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 $17.0 billion in June 2016. 

Period Victoria Australia
Total in June 216 ($ million) 5392 17,019
Change in the quarter to June 2016, $ million (%) 304 (6.0) 129 (0.8)
Change in the year to June 2016, $ million (%) 791 (17.2) 1465 (9.4)

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 June 2006 to June 2016 in billions of dollars.  In June 2006 the value of non-residential building work done in Victoria was $1.9 billion. Between June 2006 and June 2008 the value of non-residential building work done experienced an upwards growth trend, reaching $2.4 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 $2.4 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 $1.9 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 $2.2 billion in June 2016.  In June 2006 the value of non-residential building work done in Australia was $7.2 billion. Between June 2006 and March 2009 the value of non-residential building work done experienced an upwards growth trend, reaching $8.9 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 $7.9 billion in September 2009. Between September 2009 and September 2010 the value of non-residential building work done experienced an upwards growth trend, reaching $10.3 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 $8.1 billion in September 2012. Since September 2012the value of non-residential building work done in Australia has experienced an upwards growth trend and sits at $8.9 billion in June 2016. 

Period Victoria Australia
Total in June 216 ($ million) 2227 8941
Change in the quarter to June 2016, $ million (%) 64 (3.0) 184 (2.1)
Change in the year to June 2016, $ million (%) -186 (-7.7) 36 (0.4)

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 June 2006 to June 2016 in billions of dollars. In June 2006 the value of engineering construction work done in Victoria was $2.3 billion. Between June 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 $2.9 billion in June 2016.  In June 2006 the value of engineering construction work done in Australia was $15.1 billion. Between June 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 $21.5 billion in June 2016.

Period Victoria Australia
Total in June 216 ($ million) 2943 21,459
Change in the quarter to June 2016, $ million (%) 153 (5.5) -2113 (-9.0)
Change in the year to June 2016, $ million (%) 335 (12.8) -7130 (-24.9)

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 June 2006 to June 2016 in billions of dollars. In June 2006 the value of total construction work done in Victoria was $7.1 billion. Between June 2006 and December 2012 the value of total construction work done experienced an upwards growth trend, reaching $9.5 billion in December 2012. Between December 2012 and September 2013 the value of total construction work done experienced a downwards growth trend, falling to $8.7 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 $10.6 billion in June 2016.  In June 2006 the value of total construction work done in Australia was $34.4 billion. Between June 2006 and September 2013 the value of total construction work done experienced an upwards growth trend, reaching $55.9 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 $47.4 billion in June 2016.

Period Victoria Australia
Total in June 216 ($ million) 5170 30,400
Change in the quarter to June 2016, $ million (%) 217 (4.4) -1929 (-6.0)
Change in the year to June 2016, $ million (%) 149 (3.0) -7094 (-18.9)

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: 23 September 2016