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The value of non-residential building work done, in chain volume terms, generally increased in the period up until March quarter 1999. Following the completion of activity brought about by the Sydney Olympic Games and around the introduction of The New Tax System, the value of non-residential building work done declined substantially. From March quarter 2001, the sector has recorded steady growth.
Non-residential buildings are buildings other than residential buildings and include hotels, shops, factories, offices, etc. Non-residential buildings are used by businesses (both private and public) to produce goods and services.
Construction of non-residential buildings depends on the demand for particular types of buildings as well as on the level of economic activity. While overall economic conditions have an influence on investment decisions, the demand for particular types of buildings can vary considerably, depending on expectations for future activity in the industry in which a particular type of building can be used. For example, the demand for construction of new hotels depends on expected future tourism activity, the demand for factories is based on the outlook of the manufacturing industry and the demand for shops and offices on the current (over or under) supply of these buildings and expectations of future demand. Construction of community and public service buildings (hospitals, schools, etc.) tends to be more constant and is more affected by government budget considerations than overall economic activity.
Estimates of non-residential building are used by public and private sector analysts as a measure of economic activity and an indicator of business confidence and growth. They are also used in the compilation of the "other building" component of gross fixed capital formation in the national accounts, which forms part of the expenditure measure of gross domestic product (GDP), as well as being shown in the capital account.
Building Activity, Australia (8752.0)
Provides quarterly estimates on number of dwelling units and value of residential buildings, value of alterations and additions to residential buildings and value of non-residential building by class of building, by stage of construction, value of work done during period, value of work yet to be done; for each State and Territory and for private and public sectors for Australia.
Building Approvals, Australia (8731.0)
Contains monthly information on the number and value of non-residential building by class of building approved.