Economic briefing note on building work done in September 2016

September 2016

Release date: 18 January 2017
Next release: 12 April 2017

Building work done in Victoria decreased in the September quarter 2016 (down 7.6 per cent) to $7366 million. This decrease comprised a decline in both residential building work done (down 8.3 per cent) to $5239 million and non-residential building work done (down 5.6 per cent) to $2127 million. The category of other non-residential buildings accounted for the largest portion of the decline in non-residential building value, down 7.9 per cent in the September quarter 2016. This decline was led by falls in religious buildings (down 37.9 per cent), health (non-aged care) facilities (down 29.3 per cent), and aged care facilities (down 29.0 per cent).

In the September quarter 2016, Victoria's share of national total building value decreased to 28.4 per cent (down from 29.1 per cent in the June quarter 2016).

Nationally building work done decreased in the September quarter 2016 to $25,891 million (down 5.5 per cent). Among the states, Victoria (down 7.6 per cent) experienced the second largest decrease in building work done in percentage terms, behind Western Australia (down 8.1 per cent).

In the year to September quarter 2016, Australia saw an increase in total building work done of $368 million (up 1.4 per cent). Victoria recorded a decrease in total building work done over the same period of $49 million (down 0.7 per cent).

Building work done

Building work done NSW VIC QLD SA WA TAS AUS
Total building work done Sep quarter 2016 ($ million) 8105 7366 5054 1176 3016 307 25,891
Change since June quarter 2016, $ million (%) -378 (-4.5) -602 (-7.6)

-171 (-3.3)

-7 (-0.6)

-267 (-8.1)

-13 (-4.0)  -1503 (-5.5)
Annual change in the year to Se quarter 2016, $ million (%) 798 (10.9) -49 (-0.7) 302 (6.4) -83 (-6.6) -691 (-18.6) 7 (2.4) 368 (1.4)
Non-residential building value Sep quarter 2016 ($ million) 2554 2127 1525 427 1164 143 8304
Change since June quarter 2016, $ million (%) -412 (-13.9)  -127 (-5.6) -263 (-14.7)  -31 (-6.7) -71 (-5.7) 2 (1.7) -973 (-10.5)
Annual change in the year to Sep quarter 2016, $ million (%) 16 (0.6) -353 (-14.3)  -170 (-10.0) -88 (-17.0) -151 (-11.5) 41 (39.9) -671 (-7.5)
Residential building value Sep quarter 2016 ($ million) 5551 5239  3529  749    1853 163  17,587 
Change since June quarter 2016, $ million (%) 34 (0.6) -476 (-8.3) 92 (2.7) 24 (3.3) -196 (-9.5) -15 (-8.6) -530 (-2.9)
Annual change in the year to Sep quarter 2016, $ million (%) 782 (16.4) 304 (6.2) 472 (15.5) 4 (0.6) -541 (-22.6)  -34 (-17.1) 1039 (6.3)

This chart shows the value of residential building work done in Victoria and Australia between September 2006 and September 2016. Victoria and Australia have followed similar trends over this period. The value of residential building work done in Victoria was $3.0 billion in the September quarter 2006. Between September quarter 2006 and September quarter 2011 the value of residential building work done followed an upwards growth pattern, reaching $4.4 billion in September quarter 2011. Between September quarter 2011 and September quarter 2014 the value of building work done trended slightly downwards, reaching $4.2 billion in September quarter 2014. Since September quarter 2014, the value of residential building work done in Victoria has trended upwards, reaching $5.2 billion in September quarter 2016. The value of residential building work done in Australia was $12.4 billion in the September quarter 2006. Between September quarter 2006 and June quarter 2010 the value of residential building work done followed an upwards growth pattern, reaching $14.3 billion in June quarter 2010. Between June quarter 2010 and June quarter 2012 the value of building work done trended slightly downwards, reaching $12.5 billion in June quarter 2012. Since June quarter 2012, the value of residential building work done in Australia has trended upwards, reaching $17.6 billion in September quarter 2016.

Date range Victoria ($ billion) Australia ($ billion)
September 2006 3.0 12.4
June 2010 n/a 14.3
September 2011 4.4 n/a
June 2012 n/a 12.5
September 2014 4.2 n/a
September 2016 5.2 17.6

Non-residential building work done in Victoria and Australia from September 2006 to September 2016. This chart shows the value of non-residential building work done in Victoria and Australia between September 2006 and September 2016. Victoria and Australia have followed similar trends over this period. The value of non- residential building work done in Victoria was $2.0 billion in the September quarter 2006. Between September quarter 2006 and June quarter 2010 the value of non-residential building work done followed an upwards growth pattern, reaching $2.5 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 $2.6 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 September quarter 2016. The value of non- residential building work done in Australia was $7.4 billion in the September quarter 2006. Between September quarter 2006 and September quarter 2010 the value of non-residential building work done followed an upwards growth pattern, reaching $10.5 billion in September quarter 2010. Between September quarter 2010 and September quarter 2012 the value of building work done trended slightly downwards, reaching $8.3 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 $9.2 billion in December quarter 2015. In September quarter 2016 the value of non-residential building work done in Australia was $9.0 billion.

Date range Victoria ($ billion) Australia ($ billion)
September 2006 2.0 7.4
June 2010 2.5 10.5
September 2012 2.0 8.3
March 2015 2.6 n/a
December 2015 n/a 9.2
September 2016 2.1 9.0

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: 13 February 2017