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1301.0 - Year Book Australia, 2006  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 20/01/2006   
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Contents >> Chapter 19 - Construction >> Residential building

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 19.6 shows that total dwelling unit approvals between 1995-96 and 1998-99 experienced relatively stable growth. 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 2004-05 the total number of dwelling unit approvals decreased to 159,102.

Graph 19.6: DWELLING UNITS APROVED


The major component of dwelling unit approvals is new houses (table 19.7). New house approvals accounted for 67% of total dwelling unit approvals in 2004-05, up from 66% in 2003-04. New houses and new other residential dwelling units experienced a decrease in the number of approvals in 2004-05, of 11% and 14% respectively, compared with 2003-04, while the number of conversion approvals increased by 10%. Overall, total dwelling units approved decreased by 13% compared with 2003-04.

19.7 DWELLING UNITS APPROVED


New houses
New other
residential
dwelling units
Conversions
Total
dwelling units(a)

1999-2000
123,191
50,244
1,911
176,758
2000-01
80,095
37,959
2,225
121,304
2001-02
121,516
48,533
1,909
172,818
2002-03
116,895
58,515
1,841
178,463
2003-04
120,407
58,340
1,490
181,372
2004-05
106,841
49,893
1,639
159,102

(a) The total includes non-residential buildings and alterations and additions to residential buildings.

Source: Building Approvals, Australia (8731.0).


NEW OTHER RESIDENTIAL BUILDING APPROVALS

Other residential building refers to structures other than houses, which are built for accommodation purposes. This includes buildings such as blocks of flats, units and apartments, and semi-detached houses and townhouses.

Prior to 1996-97 approvals for semi-detached houses, row or terrace houses and townhouses were greater than for flats, units and apartments. From 1996-97 the number of approvals for flats, units and apartments has consistently exceeded approvals for semi-detached houses, row or terrace houses and townhouses.

While they are still the major component of new other residential approvals (contributing 55% of all approvals), in 2004-05 the number of approvals for flats, units and apartments decreased. Since 2002-03 the gap between the two dwelling types has converged, with approvals for semi-detached houses, row or terrace houses and townhouses decreasing at a much slower rate than approvals for flats, units and apartments in 2004-05 (graph 19.8).

Graph 19.8: NEW OTHER RESIDENTIAL DWELLING UNITS APPROVED


Table 19.9 provides additional details of the types of other residential dwelling units approved. In 2004-05 new semi-detached, row or terrace houses and townhouses showed decreases in both one storey (1%) and two or more storeys (7%) approvals. All types of new flats, units or apartments building approvals decreased in 2004-05 compared with 2003-04, with four or more storeys decreasing the most (24%). Approvals for new flats, units or apartments with four storeys or more, accounted for 38% of new other residential building approvals in 2004-05, down from 43% in 2003-04.

19.9 NEW OTHER RESIDENTIAL DWELLING UNITS APPROVED

1999-2000
2000-01
2001-02
2002-03
2003-04
2004-05

New semi-detached, row or terrace houses, townhouses, etc.
One storey
10,455
7,420
9,063
9,500
10,653
10,497
Two or more storeys
12,916
8,578
10,567
11,938
13,011
12,049
Total
23,371
15,998
19,630
21,438
23,664
22,546
New flats, units or apartments in a building
One or two storeys
5,400
2,876
3,455
3,662
4,389
3,710
Three storeys
4,846
4,188
5,000
5,555
5,389
4,774
Four or more storeys
16,627
14,897
20,448
27,860
24,898
18,863
Total
26,873
21,961
28,903
37,077
34,676
27,347
Total
50,244
37,959
48,533
58,515
58,340
49,893

Source: Building Approvals, Australia (8731.0).


NEW RESIDENTIAL BUILDING WORK DONE

Between 2003-04 and 2004-05 the value of total building work done (in chain volume terms) increased by $397m (less than 1%) to $53,970m (table 19.10). However, total new residential building decreased by $321m (1%), with new residential building for houses decreasing by $304m.

During 2004-05 new residential buildings generated 56% of the value of total building work done (in chain volume terms). A further 33% of the value was generated by non-residential building, while alterations and additions accounted for the remaining 10%. Estimates of alterations and additions to residential buildings include all approved building activity carried out on existing residential buildings, valued at $10,000 or more.

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

New residential building

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

1997-98
14,517
5,774
20,283
3,915
15,229
39,587
1998-99
15,416
6,653
22,067
4,152
15,980
42,331
1999-2000
18,501
7,408
25,893
4,702
15,590
46,061
2000-01
12,853
5,973
18,831
3,597
12,900
35,352
2001-02
16,161
7,038
23,202
4,278
13,582
41,065
2002-03
19,670
9,622
29,299
5,044
16,223
50,562
2003-04
20,272
10,472
30,743
5,615
17,215
53,573
2004-05
19,968
10,453
30,422
5,605
17,943
53,970

(a) Chain volume measures, reference year is 2003-04.
(b) Chain volume measures for years other than 2003-04 and 2004-05 are not additive.

Source: Construction Work Done, Australia, Preliminary (8755.0).


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