Quarterly data for construction work recently released by the ABS shows that both the value of building and engineering construction work done across Victoria saw a decline in the September quarter.

The total building construction work completed in dollar value terms recorded approximately $7.26 billion for the September quarter (Chart 1), down by around 8.1 per cent from the June quarter or a year-on-year decline of around 2.1 per cent. Total value of building construction work done for the past 12 months was close to $30.1 billion.

Meanwhile, the value of engineering construction work done recorded close to $2.83 billion during the same period (Chart 1), having dipped by 3.6 per cent compared to that for the June quarter but grown by around 9.6 per cent compared to the same period last year. Total value of building construction work completed for the past 12 months recorded approximately $11.24 billion.

Put in context, engineering construction in Victoria remained buoyant and the value of work done was still at a relatively high level. As the state continues with its commitment to large scale infrastructure investment state-wide, engineering construction activities are expected to remain stable over the short to medium term.

In comparison, building construction appears to be moderating, due primarily to the cooling off in the apartment market. This is also reflective of the decline of new dwelling approvals in recent months. Building activities across the state are likely to gradually move away from the recent peaks over the short term, albeit they will likely maintain at healthy levels as population growth, the fundamental driver of growth, remains robust.