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1301.0 - Year Book Australia, 2004  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 27/02/2004   
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Contents >> Construction >> Trends in construction activity

Construction activity occurs in three broad sectors: residential building, non-residential building and engineering construction. The level of activity of the construction industry by sectors is shown in table 19.3. In 2001-02 residential building accounted for 44% of the value of work done, engineering construction for 34% and non-residential building for 22%.

The value of work done in 2001-02 was substantially higher than the previous year, with an increase of 14% following a 19% decline 2000-01. All three construction sectors exhibited increases in the value of work done between 2000-01 and 2001-02 but not to the levels experienced in 1999-2000. Residential building experienced the largest growth, with a 23% increase on the previous financial year. This was followed by engineering construction (8%) and non-residential building (6%).

19.3 VALUE OF CONSTRUCTION WORK DONE(a), By type of activity

Residential building
Non-residential building
Engineering construction
Total construction(b)
$m
$m
$m
$m

1996-97
19,258
14,579
16,510
50,483
1997-98
22,858
14,649
18,598
56,163
1998-99
24,769
15,371
20,482
60,684
1999-2000
28,903
14,996
20,590
64,261
2000-01
21,207
12,447
18,144
51,798
2001-02
26,002
13,135
19,674
58,811

(a) Chain volume measures, reference year is 2000-01.
(b) Chain volume measures are not additive for most periods, the component measures do not sum to a total in the same way as the corresponding current price components do.
Source: Building Activity, Australia (8752.0); Engineering Construction Activity, Australia (8762.0).

The pattern of construction activity by sector has changed substantially over time (graph 19.4). In 1987-88, the value of non-residential building activity was greater than engineering construction activity. After 1991-92, however, engineering construction activity has consistently exceeded non-residential building activity.

Graph 19.4 also shows the acceleration in residential building activity to record levels prior to the introduction of The New Tax System in July 2000, followed by a substantial downturn until the start of 2001.

Graph - 19.4 Construction activity, By type of activity


Over the past decade, public sector construction has remained relatively constant, maintaining an annual value of work done of around $15b (graph 19.5). Private sector construction on the other hand has been more volatile, particularly over the past few years. The value of private sector construction declined sharply after July 2000, falling by 24%. Private sector construction has, however, almost recovered from this sharp decline, increasing 20% in 2001-02.

Graph - 19.5 Construction activity, By sector


More detailed information on the value of residential and non-residential building work done is presented in table 19.6. In 2001-02 the value of building work done increased by $5,483m (16%) to $39,137m, following a significant fall of 23% in 2000-01. During 2001-02, work done on total new residential buildings increased by $4,130m (23%), recovering the majority of the 27% decline experienced during 2000-01. Non-residential building activity did not experience the same level of recovery, increasing by $688m (6%) in 2001-02, following a decline of $2,549m (-17%) during the preceding year.

19.6 VALUE OF BUILDING WORK DONE(a), By type of activity

New residential building

Houses
Other residential
buildings
Total(b)
Alterations and additions to residential buildings
Non-residential
building
Total building(b)
$m
$m
$m
$m
$m
$m

1996-97
11,392
4,704
16,089
3,170
14,579
34,041
1997-98
13,678
5,499
19,170
3,689
14,649
37,618
1998-99
14,524
6,335
20,856
3,913
15,372
40,226
1999-2000
17,431
7,055
24,472
4,430
14,996
43,770
2000-01
12,119
5,692
17,812
3,395
12,447
33,654
2001-02
15,216
6,726
21,942
4,060
13,135
39,137

(a) Chain volume measures, reference year is 2000-01.
(b) Chain volume measures are not additive; for most periods the component measures do not sum to a total in the same way as the corresponding current price components do.
Source: Building Activity, Australia (8752.0).


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