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1301.0 - Year Book Australia, 2012  
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 24/05/2012   
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Construction

CONSTRUCTION ACTIVITY

CONSTRUCTION WORK DONE

Construction activity includes the construction of buildings and engineering works, such as roads, bridges and railways, and is carried out by both the private and public sectors. In 2010–11, the value of construction work done (in volume terms) for the public sector (by both the private and public sectors) was $48 billion (graph 21.4). After a decline in 2009–10, the value of construction work done for the private sector increased by 6% in 2010–11, to $119 billion.

Graph 21.4 Construction work done, By sector(a)



The composition of construction work done has changed significantly over time among the three broad areas of construction – residential building, non-residential building and engineering construction.

Engineering construction activity has grown steadily, surpassing the value of residential building activity in 2005–06 and reaching $86 billion in 2010–11 (graph 21.5). In 2010–11, the value of residential building construction was $47 billion and the value of non-residential building work done was $35 billion.

Graph 21.5 Value of work done, By type of activity(a)



RESIDENTIAL BUILDING

Residential buildings are primarily used for long-term residential purposes, whereas non-residential buildings are used for other purposes. Residential buildings are categorised as separate houses or other residential buildings (such as semi-detached houses, townhouses, flats, units and apartments). Building work is categorised as either new work or an alteration or addition to an existing building (including conversions of buildings from non-residential to residential use).

Approvals

Building approvals are used as a key indicator of future building activity, as construction generally commences in the months after approval is given.

Graph 21.6 shows the number of dwelling units approved as new houses, new other residential dwellings and total dwellings. Total dwelling unit approvals have fluctuated in recent years. In 2010–11, the total number of dwelling unit approvals was 163,052, which was a small decrease (5%) on the previous year.

New houses make up the largest component of dwelling unit approvals. In 2010–11, the number of new house approvals was 99,473, a decrease of 13% since 2009–10. In contrast to new houses, the number of new other residential dwellings rose 11% between 2009–10 and 2010–11, to 62,144.

Graph 21.6 Dwelling units approved



In 2010–11, the number of dwelling units approved in new semi-detached, row or terrace houses and townhouses fell by 7% over the previous year (table 21.7). There was a decrease (18%) in new one storey dwelling units in this category, partly offset by an increase (7%) in those with two or more storeys.

The number of dwelling units approved in new flat, unit or apartment buildings increased by 26% in 2010–11, with a decrease of 55% in buildings with one or two storeys and a substantial increase of 70% in those with four or more storeys.


21.7 NEW OTHER RESIDENTIAL DWELLING UNITS APPROVED
2009–10
2010–11

New semi-detached, row or terrace houses, townhouses, etc
One storey
13 311
10 861
Two or more storeys
10 915
11 629
Total
24 226
22 490
New flats, units or apartments in a building
One or two storeys
8 981
4 085
Three storeys
3 966
4 073
Four or more storeys
18 567
31 496
Total
31 514
39 654
Total
55 740
62 144

Source: Building Approvals, Australia (8731.0).


Commencements

Graph 21.8 shows the number of dwelling units commenced each year between 2000–01 and 2010–11. In 2010–11, work commenced on 155,951 dwellings, which included 96,497 new houses and 58,340 dwellings in new other residential buildings.

Graph 21.8 Dwelling unit commencements



Graph 21.9 shows the estimated completion value (in volume terms) of residential work commenced each year from 2000–01 to 2010–11. In 2010–11, the value of new houses commenced was $26 billion and the value of new other residential building work commenced was $14 billion. The total value of residential work commenced in 2010–11, which includes alterations and additions to existing residential buildings, was $47 billion.

Graph 21.9 Value of residential work commenced(a)



Building work done

Between 2009–10 and 2010–11, the value (in current prices) of total residential building work done increased by 5%, to $48 billion (table 21.10). There was a decrease of 2% in the value of work done for new houses, while the value of work done on new other residential buildings increased by 19% and work done on alterations and additions to existing residential buildings increased by 7%.


21.10 VALUE OF RESIDENTIAL BUILDING WORK DONE(a)

New houses
New other residential
Total new residential
Alterations and additions
Total residential
$m
$m
$m
$m
$m

2009–10
27 823
11 374
39 197
6 878
46 075
2010–11
27 372
13 576
40 948
7 393
48 341

(a) Current prices.
Source: Building Activity, Australia (8752.0).


NON-RESIDENTIAL BUILDING

The value (in current prices) of non-residential building work approved decreased by 30%, from $40 billion in 2009–10 to $28 billion in 2010–11 (table 21.11). Educational and health facilities contributed most to this decrease, with reductions of $12 billion and $3 billion respectively. Small increases in the value of approvals occurred for most other building types.

The value of non-residential building work done was steady overall at $35 billion in both 2009–10 and 2010–11, with several small falls and rises. The largest decrease was for Other non-residential buildings n.e.c, which decreased by $427 million. The largest increase was for Health facilities ($529 million).


21.11 VALUE OF NON-RESIDENTIAL BUILDING WORK(a)(b)
Approved
Work done


2009–10
2010–11
2009–10
2010–11
$m
$m
$m
$m

Commercial
Retail and wholesale trade
3 956
4 764
4 455
4 822
Transport
476
586
782
615
Offices
4 309
4 827
5 532
5 119
Other commercial buildings n.e.c.
231
209
246
241
Total
8 971
10 386
11 015
10 798
Industrial
Factories
851
1 248
984
948
Warehouses
1 911
2 101
1 797
2 075
Agricultural and aquacultural
148
149
211
311
Other industrial buildings n.e.c.
167
224
282
228
Total
3 078
3 722
3 274
3 562
Other non-residential
Educational
16 664
5 089
10 851
10 648
Religious
187
186
154
215
Aged care facilities
627
687
928
703
Health
5 994
2 949
2 844
3 373
Entertainment and recreation
1 399
1 932
1 966
2 012
Accommodation
720
1 107
989
789
Other non-residential buildings n.e.c.
2 270
1 835
2 881
2 454
Total
27 860
13 785
20 613
20 195
Total non-residential building
39 909
27 894
34 902
34 554

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


ENGINEERING CONSTRUCTION

Graph 21.12 shows the total value of engineering construction work done (in volume terms) each year from 2000–01 to 2010–11, for the private sector and for the public sector. The value of engineering construction work done for the private sector has exceeded that done for the public sector since 2002–03 and, in 2010–11, reached $56 billion, or 65% of the total value of engineering construction work done. In 2010–11, the value of engineering construction work done for the public sector was $30 billion, of which 51% was done by the private sector for the public sector and 49% was done by the public sector directly.

Graph 21.12 Engineering construction work done, By sector(a)


Table 21.13 shows the contribution of the public and private sectors to the value of work done (in current prices) for different categories of engineering construction. In 2010–11, the most significant categories in terms of the value of engineering construction work done were for facilities (excluding buildings) for Oil, gas, coal and other minerals; Roads, highways and subdivisions; and Electricity generation, transmission and distribution.

The value of engineering construction work done in 2010–11 for mining facilities for Oil, gas, coal and other minerals was $29 billion, almost all of which was for the private sector. The value of work done on Roads, highways and subdivisions was $16 billion, of which 68% was for the public sector. For Electricity generation, transmission and distribution, the value of work done was $11 billion, of which 60% was for the public sector.

The largest changes in the value of engineering construction work done between 2009–10 and 2010–11 were for mining facilities (Oil, gas, coal and other minerals), with an increase of nearly $5 billion (19%) and Roads, highways and subdivisions, with an increase of nearly $2 billion (13%).


21.13 VALUE OF ENGINEERING CONSTRUCTION WORK DONE(a)(b)
2009–10
2010–11


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
4 867
9 493
14 360
5 185
11 060
16 245
Bridges
46
1 215
1 261
110
1 157
1 268
Railways
1 336
3 327
4 663
1 968
4 022
5 990
Harbours
1 412
713
2 125
2 612
722
3 334
Water storage and supply
1 735
4 129
5 864
2 946
2 933
5 879
Sewerage and drainage
517
2 329
2 845
652
2 806
3 458
Electricity generation, transmission and distribution
4 260
6 764
11 024
4 213
6 447
10 660
Pipelines
994
15
1 009
1 734
33
1 767
Recreation
1 517
1 088
2 606
1 592
1 279
2 871
Telecommunications
3 656
181
3 837
3 630
271
3 901
Oil, gas, coal and other minerals
24 210
166
24 377
28 847
57
28 904
Other heavy industry
494
9
503
859
8
866
Other
1 279
240
1 519
784
111
895
Total
46 324
29 668
75 993
55 133
30 906
86 039

(a) In current prices.
(b) Public sector includes work done by the private sector for the public sector and public sector work.
Source: Engineering Construction Activity, Australia (8762.0).

 

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Statistics contained in the Year Book are the most recent available at the time of preparation. In many cases, the ABS website and the websites of other organisations provide access to more recent data. Each Year Book table or graph and the bibliography at the end of each chapter provides hyperlinks to the most up to date data release where available.


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