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1301.0 - Year Book Australia, 2008  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 07/02/2008   
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Contents >> Construction >> Construction activity

CONSTRUCTION ACTIVITY

Construction activity is carried out by both private and public sectors. In 2006-07 the value of construction work done (in volume terms) for the public sector was $22,075m (graph 21.3). Private sector construction can be volatile. It experienced a sharp decline in 2000-01 after the introduction of The New Tax System in July 2000. Between 2005-06 and 2006-07 private sector construction (in volume terms) increased by 7% to $84,526m.

21.3 Construction work done(a), by sector
Graph: 21.3 Construction work done(a), by sector

In the three broad areas of construction activity - residential building, non-residential building, and engineering construction - the pattern of construction activity by area of activity has changed significantly over time.

Residential building activity which accelerated to a high level prior to the introduction of The New Tax System in July 2000, was followed by a substantial downturn in 2000-01 (graph 21.4). In 2005-06 engineering construction activity surpassed residential building in value.

21.4 Value of work done(a), by type of activity(b)
Graph: 21.4 Value of work done(a), by type of activity(b)


Residential building

Residential building involves the construction of dwelling units, including new houses, other new residential buildings (flats, apartments, villa units, townhouses, duplexes, etc.), and dwellings created as part of alterations and additions to existing buildings (including conversions to dwelling units). Building approvals are used as a key indicator of future activity, as nearly all building activity must be approved by local and/or other authorities.

Residential building approvals

Graph 21.5 shows total and residential dwelling unit approvals. Activity brought forward ahead of the introduction of The New Tax System in July 2000 contributed to the increase and decrease between early-1999 and late-2000. In 2006-07 the total number of dwelling unit approvals was 152,790.

21.5 Dwelling units approved
Graph: 21.5 Dwelling units approved

New other residential building approvals

Other residential building refers to a building other than a house primarily used for long-term residential purposes and which contains (or has attached to it) more than one dwelling unit. This includes buildings such as blocks of flats, units and apartments, and semi-detached houses and townhouses.

In 2006-07 the number of approvals for new flats, units and apartments increased by 2.6%, from 23,924 to 24,541 (table 21.6).

In 2006-07 new semi-detached, row or terrace houses and townhouses approvals decreased for one storey dwellings (1.8%), while approvals for two or more storeys increased (by 5.4%). For new flat, unit or apartment building approvals, those with four or more storeys increased (by 11%), while those in a building of one, two and three storeys fell. Approvals for new flats, units or apartments accounted for 54% of total new other residential building approvals in 2006-07.

21.6 NEW OTHER RESIDENTIAL DWELLING UNITS APPROVED

2005-06
2006-07

New semi-detached, row or terrace houses, townhouses, etc.
One storey
10 051
9 869
Two or more storeys
10 461
11 023
Total
20 512
20 892
New flats, units or apartments in a building
One or two storeys
2 975
2 479
Three storeys
5 103
4 399
Four or more storeys
15 846
17 663
Total
23 924
24 541
Total
44 436
45 433

Source: Building Approvals, Australia (8731.0).


New residential building work done

Between 2005-06 and 2006-07 the value of total building work done (in volume terms) increased by $2,294m (3.9%) to $61,522m (table 21.7). Total new residential building increased from $31,280m to $31,478m, with new residential building for houses increasing by $1,149m or 5.5%.

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

New residential building
Houses
Other residential buildings
Total
Alterations and additions
Non-residential building
Total building
$m
$m
$m
$m
$m
$m

2004-05
21 237
11 600
32 838
5 915
19 848
58 600
2005-06
20 852
10 253
31 104
5 693
22 094
58 891

(a) Volume measures. Reference year is 2004-05.
Source: Construction Work Done, Australia, Preliminary (8755.0).



Non-residential building

The value of non-residential building work approved in 2005-06 rose 26% to $25,245m (table 21.8). Between 2004-05 and 2005-06 the types of non-residential buildings which experienced the largest relative increases in approvals were non-aged care medical services health facilities (143%), entertainment and recreation (61%), offices (55%), and educational buildings (41%). Those that experienced a decline in approvals were transport buildings (24%), accommodation (10%), agricultural and aquacultural buildings (2.3%), aged care facilities (1.5%) and factories and other secondary production buildings (0.9%).

The total value of non-residential building work done rose 18% to $23,625m in 2005-06. The largest percentage increases in value of non-residential work done were experienced by religious building work (47%), industrial warehouses (39%) and other non-residential n.e.c (26%). A decline in work done for non-residential building work occurred in factories and other secondary production buildings (6.3%).

21.8 VALUE OF NON-RESIDENTIAL BUILDING WORK(a)(b)

Approved
Work done
2004-05
2005-06
2004-05
2005-06
$m
$m
$m
$m

Commercial
Retail/wholesale trade
4 186
4 360
3 942
4 815
Transport
611
463
625
632
Offices
3 346
5 179
4 047
4 756
Other commercial n.e.c.
118
143
102
127
Total
8 261
10 144
8 716
10 330
Industrial
Factories
1 369
1 356
1 364
1 278
Warehouses
2 165
2 685
1 863
2 585
Agricultural/aquacultural
170
166
145
163
Other industrial n.e.c.
210
288
209
246
Total
3 913
4 496
3 581
4 272
Other non-residential
Educational
2 297
3 241
2 331
2 910
Religious
120
150
126
185
Aged care facilities
921
907
912
936
Health
673
1 631
947
966
Entertainment and recreation
1 143
1 835
1 340
1 497
Accommodation
1 398
1 259
1 062
1 280
Other non-residential n.e.c.
1 295
1 582
989
1 249
Total
7 847
10 606
7 707
9 023
Total non-residential building work
20 021
25 245
20 004
23 625

(a) Valued at $50,000 or more.
(b) In current prices.
Source: Building Activity, Australia (8752.0); Building Approvals, Australia (8731.0).



Engineering construction

The total value of engineering construction work done by the private sector and for the public sector between 1995-96 and 2005-06 is shown in graph 21.9. The value of public sector engineering construction work done (in volume terms) increased over the last year. Since around 2001-02 the value of engineering construction work done by the private sector has increased substantially and has been of greater value than work done for the public sector.

21.9 Engineering construction work done, by sector(a)(b)
Graph: 21.9 Engineering construction work done, by sector(a)(b)

Table 21.10 shows the contribution of public and private sectors to engineering construction work done (in current prices). The private sector share of the total construction work done was 58% in 2004-05 and 61% in 2005-06.

Engineering construction for oil, gas, coal and other minerals mining accounted for 29% of the total value of construction work done in 2005-06, with total value for this construction increasing 94% between 2004-05 and 2005-06. The value of private sector construction activity for oil, gas, coal and other minerals almost doubled between 2004-05 and 2005-06 (from $6,425m to $12,281m). The private sector decreased its share of construction work done of roads, highways and subdivisions from 26% in 2004-05 to 21% in 2005-06. Total pipelines construction increased by 44% between 2004-05 and 2005-06, while total electricity generation, transmission and distribution construction increased by 21%.

21.10 VALUE OF ENGINEERING CONSTRUCTION WORK DONE

2004-05
2005-06
For the private sector
For the public sector
Total
For the private sector
For the public sector
Total
$m
$m
$m
$m
$m
$m

Roads, highways and subdivisions
5 077
4 383
9 460
5 550
5 115
10 665
Bridges
86
296
382
17
480
497
Railways
484
1 749
2 233
480
1 750
2 230
Harbours
759
166
925
872
141
1 013
Water storage and supply
353
874
1 227
448
912
1 360
Sewerage and drainage
294
830
1 124
319
869
1 188
Electricity generation, transmission and distribution
2 122
2 493
4 615
1 977
3 609
5 586
Pipelines
687
15
702
896
115
1 011
Recreation
1 292
365
1 657
1 287
424
1 711
Telecommunications
925
2 573
3 498
1 204
3 501
4 705
Oil, gas, coal and other minerals
6 425
23
6 448
12 281
258
12 539
Other heavy industry
519
3
522
818
5
823
Other
217
54
271
504
93
597
Total
19 240
13 823
33 063
26 652
17 274
43 926

Source: Engineering Construction Activity, Australia (8762.0).


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