October 9, 2019
Building Approval statistics are a useful tool to monitor economic activity, employment and investment in our region, for they can point to what may come next in the construction cycle, and this includes employment in the construction sector. According to REMPLAN estimates, the construction sector is the top contributing sector in terms of gross revenue generated by businesses in the Kimberley ($630 M). But what do the most recent building approval figures released by the Australian Bureau of Statistics (ABS) tell us?
For the period 2018-2019, the value in terms of building approvals for the Kimberley was nearly $74 million, out of which approximately 60% was attributable to non-residential buildings, which comprises industrial, commercial educational/health and other buildings. Non-residential buildings tend to be overlooked in many economic commentaries, but they are crucial for enhancing physical regional infrastructure in the long term. The value of total building approvals in the Kimberley was led by both Wyndham East-Kimberley and Broome, as shown in the table below.
Kimberley: Building approvals per Local Government Area (LGA) 2018-2019
|wdt_ID||LGA||Total dwellings (number)||Value of new houses ($'000)||Value of total residential building ($'000)||Value of non-residential building ($'000)||Value of total building ($'000)|
|3||Derby-West Kimberley (S)||9||4,458.6||5,532.4||1,895.0||7,427.4|
|4||Halls Creek (S)||3||1,488.2||1,488.2||1,209.9||2,698.1|
|5||Wyndham-East Kimberley (S)||22||9,341.0||10,781.9||29,105.3||39,887.3|
|LGA||Total dwellings (number)||Value of new houses ($'000)||Value of total residential building ($'000)||Value of non-residential building ($'000)||Value of total building ($'000)|
Source: ABS, Catalogue 8731.0 – Building Approvals released on 09 Oct 2019.
Data recently released by the ABS for 2019-2020 Financial Year to Date (FYTD) also shows that, with the exception of the Local Government Area Broome (6 total dwellings) and Derby-West Kimberley (1 total dwelling), there have been no building approvals for Wyndham-East Kimberley and Halls Creek, as shown in the chart below. The decline experienced by Kimberley Local Government Areas is part of a broader declining trend in the number of building approvals and housing prices across Australia.
Kimberley: Building Approvals for total number of dwellings
For further information on Building approvals, please visit the Australian Bureau of Statistics web page.