CONSTRUCTION


BUILDING APPROVALS

The number of dwelling units approved in South Australia (in trend terms) has fallen for the ninth consecutive month with 763 approvals recorded in January 2011. This represents a decrease of 6.5% over the December estimate (816), and 30.2% lower than at the same time in the previous year (1,093). Nationally, the number of dwelling unit approvals also fell (0.5%) to 13,141. The January 2011 estimate is 16.2% below the peak recorded nearly a year earlier (15,673 in February 2010).

The trend estimate for the number of private sector houses approved in South Australia fell (4.3%) to 569 in January 2011. Private sector house approvals as a proportion of total dwelling unit approvals was 69.6% in January 2010, while in January 2011 this proportion was 74.6%.

In the year to January 2011, the total number of dwelling units approved in South Australia rose by 2.2%. Increases were recorded in three of the seven Statistical Divisions (SD) with the largest increase in the Murray Lands SD (up 58.9%). This follows a 14.8% decrease for this SD in the preceding twelve months to January 2010.

The largest decrease in dwelling units approved in the year to January 2011, occurred in the Northern SD (down 20.1%).

DWELLING UNITS APPROVED, by Statistical Division, Original, South Australia
	Year ended January 2010		Year ended January 2011
	Dwelling units	Change over previous year	Dwelling units	Change over previous year
	no.	%	no.	%
Adelaide	8 469	-4.3	8 366	-1.2
Outer Adelaide	1 498	-13.6	1 670	11.5
Yorke and Lower North	463	-23.6	528	14.0
Murray Lands	433	-14.8	688	58.9
South East	412	-23.1	358	-13.1
Eyre	263	-16.2	257	-2.3
Northern	363	-24.4	290	-20.1
South Australia	11 901	-8.7	12 157	2.2
Source: Building Approvals, Australia - data available on request

Map of South Australia's Statistical Divisions (PDF 3.083MB)


*DATA NOTES

Please refer to source publications for impact of floods on data and collections.

The trend estimates should be interpreted with caution as the underlying behaviour of building approvals may be affected by initiatives within the Government stimulus package, which included the "Building the Education Revolution" (BER) program and the Social Housing Initiative as well as other developments associated with global economic conditions. From June 2009 to February 2010 BER impacts were quantified and removed from the trend estimates because of its short term nature. From March 2010 these impacts are no longer removed from the trend estimates as their effect has significantly declined. For more details on trend estimates, please see paragraphs 20 to 23 of the explanatory notes.


CONSTRUCTION WORK DONE

In the September quarter 2010, the total value of building work done (in trend terms)* in South Australia rose to $1,379.8m, an increase of 1.5% over the June quarter 2010.

Between the December quarters 2007 and 2009, the trend* estimate for the value of engineering work done rose sharply ($660.8m to $1,223.1m). Since this time, the value of engineering work has fallen to $1,065.3m in the September quarter 2010.

The upsurge in engineering construction between the December quarters 2007 and 2009 was the focus of the feature article presented in the April 2010 issue of SA Stats.

*INTRODUCTION OF NEW BASE YEAR

A new base year, 2008-09, has been introduced into the chain volume estimates which has resulted in revisions to growth rates in subsequent periods. In addition, the chain volume estimates have been re-referenced to 2008-09, thereby preserving additivity in the quarters after the reference year. Re-referencing affects the levels of, but not the movements in, chain volume estimates.