Economic briefing note on construction activity in December 2016

December 2016

Release date: 22 February 2017
Next release: 24 May 2017

In the quarter to December 2016, the value of total construction work done in Victoria increased by $253 million (up 2.4 per cent). Over the same period New South Wales experienced a an increase of $274 million (up 2.2 per cent).

Victoria recorded an increase in Victoria's residential building work done of $17 million (up 0.3 per cent), an increase in non-residential building work done of $309 million (up 14.4 per cent) and a decrease in engineering construction work done of $73 million (down 2.5 per cent) in the December quarter 2016.

In the year to December 2016, Victoria has seen an increase in total construction work done of $519 million (up 5.1 per cent) while Australia has seen a decrease in total construction work done over the same period of $3899 million (down 7.8 per cent). 

Total construction by state

Total construction NSW VIC QLD SA WA TAS AUS
Total in December 2016 ($ million) 12,985 10,630 9495 21947768574 46,264
Change in the quarter to December 2016, $ million (%) 274 (2.2) 253 (2.4) -144 (-1.5) -64 (-2.9) -526 (-6.3) -53 (-8.4) -82 (-0.2)

Victoria

Construction typeTotal in December 2016 ($ million)Change in the quarter to December 2016, $ million (%)Change in the year to December 2016, $ million (%)
Residential building533117 (0.3)253 (5.0)
Non-residential building2451309 (14.4)56 (2.4)
Engineering construction2848-73 (-2.5)209 (7.9)
Non-residential construction5299236 (4.7)266 (5.3)
Total construction10,630253 (2.4)519 (5.1)

Australia

Construction typeTotal in December 2016 ($ million)Change in the quarter to December 2016, $ million (%)Change in the year to December 2016, $ million (%)
Residential building17,965197 (1.1)963 (5.7)
Non-residential building8730155 (1.8)-405 (-4.4)
Engineering construction19,568-434 (-2.2)-4457 (-18.6)
Non-residential construction28,298-279 (-1.0)-4862 (-14.7)
Total construction46,264-82 (-0.2)-3899 (-7.8)

Breakdown by construction type

Value of 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 December 2006 to December 2016 in billions of dollars.   In December 2006 the value of residential building work done in Victoria was $3.0 billion. Between December 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 $5.3 billion in December 2016.   In December 2006 the value of residential building work done in Australia was $12.6 billion. Between December 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 $12.4 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 $18.0 billion in December 2016. 

Period Victoria ($ billions) Australia ($ billions)
December 20063.012.6
June 2010n/a14.3
June 2012n/a12.4
December 20124.3n/a
December 20133.8n/a
December 20165.318.0

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 December 2006 to December 2016 in billions of dollars. In December 2006 the value of non-residential building work done in Victoria was $2.0 billion. Between December 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 $2.4 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 $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. Between March 2015 and September 2016 the value of non-residential building work done in Victoria experienced a downwards growth trend and sits at $2.2 billion. Since September 2016 the value of non-residential building work done has experienced an upward trend to $2.5 billion in December 2016.  In December 2006 the value of non-residential building work done in Australia was $7.7 billion. Between December 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 2012 the value of non-residential building work done in Australia has experienced an upwards growth trend and sits at $8.7 billion in June 2016. 

Period Victoria ($ billions) Australia ($ billions)
December 20062.07.7
June 20082.5n/a
March 2009n/a8.9
September 20092.07.9
June 20102.4n/a
September 2010n/a10.3
September 20122.08.1
March 20152.6n/a
June 2016n/a8.7
September 20162.2n/a
December 20162.5n/a

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 December 2006 to December 2016 in billions of dollars. In December 2006 the value of engineering construction work done in Victoria was $2.2 billion. Between December 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 December 2016. In December 2006 the value of engineering construction work done in Australia was $15.0 billion. Between December 2006 and September 2012 the value of engineering construction work done experienced an upwards growth trend, reaching $34.9 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 $20.0 billion in December 2016. 

Period Victoria ($ billions) Australia ($ billions)
December 20062.215.0
December 20113.2n/a
September 2012n/a34.9
September 20142.4n/a
December 20162.820.0

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 December 2006 to December 2016 in billions of dollars. In December 2006 the value of total construction work done in Victoria was $7.3 billion. Between December 2006 and December 2012 the value of total construction work done experienced an upwards growth trend, reaching $9.8 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 December 2016. In December 2006 the value of total construction work done in Australia was $35.4 billion. Between December 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 $46.2 billion in December 2016. 

Period Victoria ($ billions) Australia ($ billions)
December 20067.335.4
December 20129.8n/a
September 20138.756.7
December 201610.646.2

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: 7 March 2017