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Feature Article - Building activity in Sydney and Melbourne
DWELLING UNITS COMPLETED, By capital city
OTHER RESIDENTIAL DWELLINGS-NUMBER OF STOREYS
There has been a clear trend towards flats, units or apartments in buildings of four or more storeys. The table below shows that this category has trended strongly upwards in Sydney from 5.1% of all dwelling units completed in 1993-94 to 26.5% in 2000-01, whereas in Melbourne there has been a more gradual increase from 2.0% to 11.4%.
Over the same period, both semi-detached buildings of one storey, and flats, units or apartments of one or two storeys, have trended downwards in Sydney, but there are no strong trends for these categories in Melbourne.
The trend towards other residential dwellings in buildings of four or more storeys is expected to continue in the next few years as evidenced by approvals and commencements data since 2000-01.
OTHER RESIDENTIAL AS PERCENTAGE OF TOTAL RESIDENTIAL DWELLINGS COMPLETED
The following graph shows that the average value of new houses completed in current prices has gradually increased in both capital cities. Despite a slight drop in value in 1996-97, the average value of a new house has steadily risen for Sydney from $115,105 in 1993–94 to $174,071 in 2000-01. In Melbourne the average value has increased from $94,797 to $151,909.
The graph below presents the average value of new houses completed in chain volume terms. The chain volume estimates measure the change in value after the direct effects of price changes have been eliminated. As with the original value, Sydney has been above Melbourne but figures have remained relatively stable for both cities from 1998-99.
VALUE OF NON-RESIDENTIAL BUILDING
The total value for non-residential buildings completed has been greater in Sydney than Melbourne.
In Sydney the value of non-residential building rose strongly from 1996-97 to 1999-00 with a drop in 2000-01. Melbourne's value has steadily grown from 1994-95.
The main categories of building contributing to these movements are hotels, entertainment/recreation and offices. These are highlighted below.
Despite a slight drop in 1998-99, the value of hotels etc. generally rose in Sydney from 1995-96. Values for Melbourne have tended to fluctuate over the period.
Large fluctuations in values for entertainment and recreational buildings have occurred for both capital cities. Sydney's activity increased from 1996-97 to 1999-00, which coincided with the lead up to the Olympic Games. Melbourne's activity peaked in 1997-98.
Both Sydney and Melbourne had significant declines in the value of office buildings completed in 1994-95. In Sydney, activity began to pick up in 1998–99, whereas in Melbourne it remained relatively flat.
For further information on this topic contact Roger Mableson on 08 8237 7494.
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