Housing market: Building approvals - value of buildings
The value of building approvals demonstrates trends in the value of houses and of other building work over time.
The Australian Bureau of Statistics (ABS) publication Building Approvals, Australia reports the value of building approvals by type of building. A building is defined as a rigid, fixed and permanent structure which has a roof. The monthly publication presents details of building work approved including the construction of new buildings; alterations and additions to existing buildings; approved non-structural renovation and refurbishment work; and approved installation of integral building features. Construction activity not defined as buildings (e.g. roads, bridges, railways, earthworks, etc.) is excluded. Data on the value of building work approved are derived by aggregating the estimated ‘value of building work when completed’ as reported on building approval documents provided to local councils and other building approval authorities.
In early 2020 the ABS suspended trend series, in addition to adopting forward factors to produce seasonally adjusted series. The trend series for Building Approvals has been reviewed and been reinstated. The rationale for suspending trend series was that it was unknown whether the impacts from COVID-19 would be short or medium to long-term, and therefore there was high probability of needing to significantly revise initial assessments of the impacts of COVID-19 on the trend. Over the last two years, the impacts of COVID-19 on Building Approvals series have not caused multiple abrupt changes in the series level in short succession, and so it is appropriate to describe a trend level through the past two years. As a result, the ABS has published a trend over the previous two years for relevant series. The data presented in the Building approvals - value of buildings dashboard menu option consequently reflects these changes.
Building Approvals, Australia data are also used in the following dashboard menu options: Building approvals - dwellings approved, Building approvals - Local Government Area and Building approvals - new residential dwellings.
See ABS Building Approvals, Australia (https://www.abs.gov.au/statistics/industry/building-and-construction/building-approvals-australia) for further information, including in-depth commentary and analysis, in particular the source data Quality Declaration. Source reference Data downloads - time series spreadsheets, tables 30–38.