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8731.0 - Building Approvals, Australia, Mar 2003  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 05/05/2003   
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Feature Article - Work done on housing jobs each quarter


This article was published in Building Approvals, Australia (Cat. no. 8731.0) March 2003


INTRODUCTION

This article examines new houses commenced between December quarter 2000 and September quarter 2001, to determine the proportion of the value of jobs which are completed in the commencement quarter and subsequent quarters. The time period between commencement and completion of these jobs includes economic cycles of low building housing activity (i.e. post GST period) and high activity (i.e. introduction of first home owners grant scheme).

Data presented in this article has been obtained from the Building Activity Survey.


RESULTS


Australia

The tables and graph below show that the proportion of value of work done on housing jobs each quarter is greater in the initial quarters.

For all housing jobs commenced in Australia between December quarter 2000 and September quarter 2001, 42.2% ($5,545m) of the work done occurred in the quarter of commencement, and an extra 33.3% ($4,380m) was done in the quarter following commencement. Cumulatively, 75.5% of work was done in this period. It should be noted that a high number of jobs were completed within two quarters. The jobs completed in the commencement quarter accounted for 11.4% of the value of all housing jobs, and those completed in the quarter following commencement accounted for 39% of the total value.


VALUE OF WORK DONE PER QTR ON HOUSES, Australia

WORK DONE IN

Total for
First
Second
Third
Fourth
Fifth
completed
qtr(a)
qtr
qtr
qtr
qtr
jobs
$m
$m
$m
$m
$m
$m

Jobs completed in
One qtr(a)
1,498.9
-
-
-
-
1,498.9
Two qtrs
2,768.4
2,364.7
-
-
-
5,133.1
Three qtrs
826.6
1,404.7
806.4
-
-
3,037.7
Four qtrs
269.2
393.3
406.5
302.7
-
1,371.7
Five or more qtrs
182.2
217.3
231.8
208.3
1,270.6
2,110.2
All jobs
5,545.3
4,380.0
1,444.7
511.0
1,270.6
13,151.6

(a) Same quarter as commencement quarter.



PERCENTAGE VALUE OF WORK DONE PER QTR ON HOUSES, Australia

WORK DONE IN

First
Second
Third
Fourth
Fifth
Total of
Proportion for
qtr(a)
qtr
qtr
qtr
qtr
all jobs
completed jobs
%
%
%
%
%
%
%

Jobs completed in
One qtr(a)
100.0
-
-
-
-
100.0
11.4
Two qtrs
53.9
46.1
-
-
-
100.0
39.0
Three qtrs
27.2
46.2
26.5
-
-
100.0
23.1
Four qtrs
19.6
28.7
29.6
22.1
-
100.0
10.4
Five or more qtrs
8.6
10.3
11.0
9.9
60.2
100.0
16.0
All jobs
42.2
33.3
11.0
3.9
9.7
100.0
100.0

(a) Same quarter as commencement quarter.

Graph - Percentage value of work done per qtr on houses



States and territories

The proportion of the value of work done in each quarter varies across states and territories.

In particular, the states and territories with the more humid climates (Queensland and Northern Territory) had much greater amount of work done in the commencement quarter. In Queensland, the proportion of the value of work done in the commencement quarter was 61.2% and in Northern Territory it was 53.4%. On the other hand, other states and territories had less completed in the quarter of commencement but more in the subsequent quarter.


PERCENTAGE VALUE OF WORK DONE PER QTR ON HOUSES, States and Territories

WORK DONE IN

First
Second
Third
Fourth
Fifth
Total of
qtr(a)
qtr
qtr
qtr
qtr
all jobs
%
%
%
%
%
%

NSW
37.1
33.9
12.3
4.4
12.3
100.0
Vic.
36.7
32.6
13.6
5.0
12.1
100.0
Qld
61.2
29.6
4.8
1.6
2.9
100.0
SA
43.6
36.4
10.4
2.8
6.9
100.0
WA
37.3
38.0
11.2
4.2
9.3
100.0
Tas.
41.4
34.4
8.8
2.4
12.9
100.0
NT
53.4
28.8
6.8
1.7
9.2
100.0
ACT
45.4
35.2
12.3
2.3
4.7
100.0
Aust.
42.2
33.3
11.0
3.9
9.7
100.0

(a) Same quarter as commencement quarter.


House categories

There are also variations in the proportion of the value of work done in each quarter according to the value of the house. In the table below, the values have been categorised into four groups viz; Low, Medium, High and Very High value housing. About half (50.2%) of the value of all housing jobs completed comprised Medium value housing.

Over 80% of the value of work done on Low and Medium value houses was undertaken in two quarters. On the other hand, less than 50% of the value of houses in the Very High category was done in this period. It is of course expected that the Very High value houses will take longer to complete.


PERCENTAGE VALUE OF WORK DONE PER QTR ON HOUSES, Australia

WORK DONE IN

First
Second
Third
Fourth
Fifth
Total of
Proportion
qtr(a)
qtr
qtr
qtr
qtr
all jobs
of all jobs
House category(b)
%
%
%
%
%
%
%

Low
57.0
31.7
4.6
1.5
5.1
100.0
12.4
Medium
48.8
36.3
8.3
2.0
4.6
100.0
50.2
High
33.1
33.8
16.6
5.5
11.0
100.0
24.6
Very High
19.1
22.3
16.8
10.6
31.2
100.0
12.8
All
42.2
33.3
11.0
3.9
9.7
100.0
100.0

(a) Same quarter as commencement quarter
(b) Housing categories selected for this analysis were:
    Low: Completion Value of less than $100,000.
    Medium: Completion Value between $100,000 and $199,999.
    High: Completion Value between $200,000 and $399,999.
    Very High: Completion Value $400,000 or more.


FURTHER INFORMATION

For more information on this topic contact Sophia Colangelo on 08 8237 7671.

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