Strong apartment growth has driven a record number of domestic building permits and a $4 billion-plus surge in the value of works across Victoria during the past year.
It is the first time the state’s domestic building permits have topped 100,000 in a calendar year.
The latest data from the Victorian Building Authority shows a total of 127,792 building permits worth $44.6 billion were issued in 2021, an increase of more than 14,000 (12.66 per cent) from the previous year.
Domestic building permits issued jumped from 96,376 in 2020 to 109,367 in 2021, resulting in the value of works soaring by $4.3 billion.
The biggest rise in the number of permits issued was in the outer suburbs of Melbourne, followed by the North Central region and Gippsland.
VBA chief operations officer Jocelyn Crawford said another year of strong growth was a positive sign for the building industry.
“Victorians have experienced a challenging two years, but as a community we have remained resilient and the industry has continued to grow, proving it to be the backbone of the state’s economic future,” she said.
“These figures are promising and in an environment of development and economic progress, demonstrate the importance that standards are upheld.”
ANZ senior economist Adelaide Timbrell said residential building approvals jumped across Australia in November after hitting a 14-month low in October.
“A jump in units of 9.7 per cent month-on-month in November was behind the positive monthly result, mostly driven by strong unit growth in Victoria (+28.8 per cent), Queensland (+47.4 per cent) and South Australia (+65.7 per cent),” she said.
“By contrast, New South Wales unit approvals dropped 48.7 per cent month-on-month to its lowest level since February 2012.”
The total number of dwellings approved across Australia rose 3.6 per cent in seasonally adjusted terms, following a 13.6 per cent fall in October.
“The rise in the total number of dwellings approved in November was driven by an increase in approvals for private sector dwellings excluding houses, which rose 9.7 per cent,” ABS director of construction statistics Daniel Rossi said.
Coinciding with the surge in apartment approvals, house construction costs hit all-time highs in the December quarter, according to the latest Federal Government monthly budget statement.
“Input prices to house construction lifted 3.8 per cent in the quarter and were 12 per cent higher over the year to December,” Commsec senior economist Ryan Felsman said.
“Melbourne saw the biggest annual lift in input prices to house construction in December, up by a massive 13.5 per cent.”
Article Source: www.theurbandeveloper.com