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Last Friday, October 11th, the .id economics team released the latest update to the building approvals data. With this update, users can monitor the latest economic trends in their Local Government Area (LGA).
This blog shows how our economic consultants use this indicator to assess the economic health of an LGA and how it can inform your economic development strategies.
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Where to find ‘Buildings Approvals’ data
Using building approval activity data to make informed decisions
How can I get help interpreting this information?
What does the latest data show
According to the Australian Bureau of Statistics (ABS), the total value of building approvals increased by 1.1 per cent in August (trend terms). While the value of residential buildings fell, the value of non-residential building rose 5.7% (trend terms). In fact, the value of non-residential building approved has risen for 12 months. However, the story varies from state to state with most states retreating from previous highs.
How are these trends playing out in your region? Skip ahead for instructions on where to find ‘Buildings Approvals’ data.
Using building approval activity data to make informed decisions
For economic development officers who need to understand and plan for jobs and investment, it’s important to monitor the level and the type of building activity happening in your region. Non-residential building approval activity is particularly important as it is a leading indicator of future employment growth. For example, an increase in office building approvals is a leading indicator of business service employment growth.
Need help interpreting the information? Learn more about our economic health checks that provide a clear evidence base for your economic development strategy.
Using building approvals data in economic development
From an economic perspective, building approvals data can be used to:
1. Monitoring the health of the local economy
2. Evaluate actions within your economic development strategy.
For example, your economic development strategy seeks to grow professional service jobs but there has been no change in office building approval activity. If this is the case, this issue should be investigated further to determine if it is a demand or supply issue holding back office development.
Case study – Regional NSW
Recently we worked with a regional NSW Council to assess the health of their local economy. As part of our analysis, we identified a sharp decline in the value of non-residential buildings approved and that this posed a risk to local employment generation. Rising unemployment rates in the region further demonstrated the need for action.
One of the actions suggested was to identify projects that could be prioritised or brought forward. The future Building Better Regions Fund was identified as one opportunity to help increase the investment pipeline and support new employment growth.
Tips from our consultants
Where to find Buildings Approvals data
You can find out more information about the buildings approvals activity in your local area on economy.id.
First, navigate to the ‘Economic indicators’ menu, and choose ‘Buildings approvals’ (click the screenshot below to enlarge).
How can I get help interpreting this information?
If you work in local government and have any questions about this building approvals data, or any of our other upcoming updates, you can contact the .id economics team here or learn more about our economic health checks.
Our specialists have deep expertise in demographics and spatial analysis, urban economics, housing research, social research and population forecasting
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