From $18 billion to $36 billion – Value of building permits in Victoria double in the past decade.
Hitting record levels, a total of 112,882 building permits issued worth $35.8 billion were reported to the Victorian Building Authority (VBA) in 2017. The value of building permits were 11.7 per cent or $3.8 billion above compared to the 2016 record of $32 billion.
This shows that from $18 billion in 2007, the value has double in the past decade. The previous highest number of building permits issued in Victoria was 112,420 in 2010.
According to the VBA, the value reached $3 billion or more in 8 of the 12 months in 2017 while it only reached these levels in 3 of the 12 months in 2016.
The annual data also reveals that there is an increase in number and value of building permits in all building use categories except Industrial. One of these categories include Domestic (houses) which has a growth of 10.6 per cent from 2016, reaching $18.6 billion – nearly half the value of all building permits reported.
The two building use categories where the strongest growth occurred were Public Buildings and Hospital/Healthcare. The value in 2017 compared with 2016 showed that:
- Public Buildings increased 32.9 per cent to $3 billion
- Hospital/Healthcare increased 17 per cent fo $1.1 billion
- Residential increased 12.6 per cent to $6.2 billion
- Domestic (houses) increased 10.6 per cent to 18.6 billion
- Commercial increased 6.6 per cent to $4.5 billion
- Retail increased 5.7 per cent to $1.8 billion
- Industrial decreased 1.3 per cent to $615 million
The value of building permits by region in 2017 compared with 2016 showed:
- South West increased 20.8 per cent to $2.4 billion
- North East increased 18.8 per cent to $911 million
- North Central increased 13.2 per cent to $1.1 billion
- North West increased 12.5 per cent to $1 billion
- Inner Melbourne increased 11.5 per cent to $16.3 billion
- Outer Melbourne increased 9.5 per cent to $13.1 billion
- Gippsland decreased 17.5 per cent to $969 million
The value of building permits in Rural Victoria outstripped the growth in the Metropolitan region, with 17.3 per cent and 10.6 per cent growth respectively.
Nine of the top ten municipalities in Victoria where building permits with a value of more than $1 billion in 2017 are:
- Melbourne ($5.02 billion)
- Wyndham ($2.1 billion)
- Casey ($1.68 billion)
- Greater Geelong ($1.6 billion)
- Monash ($1.23 billion)
- Booroondara ($1.22 billion)
- Hume ($1.20 billion)
- Glen Eira ($1.13 billion)
- Stonnington ($1.07 billion)
- Mornington Peninsula ($959 million)
Considered as a particular indicator of the construction sector’s performance, the rising total number of issued permits annually suggests that the industry in the regions of Victoria is emerging. In April 2018, 9359 permits were issued in Victoria with a total value of $2.87 billion which is up from this time last year. The construction industry in Victoria contributes positively to the state’s strong economy and indicate’s high levels of demand in the industries labour force.
To know more about the records of building permits visit www.vba.vic.gov.au