Record Number of Building Works in Victoria

18 Abercrombie St Deepdene close windows

A RECORD $38 billion in building works were approved across Victoria in the past financial year.

New figures released by the Victorian Building Authority reveal a record 114,800 building permits were issued across the state in the 12 months to June 30.

It broke the record set in the 2009-10 financial year when 113,669 permits were issued, while the $38.4 billion value of works trumped the $32.8 billion recorded in the 2016-2017 period. The figures cover everything from houses to hospitals, as well as backyard pergolas and sheds.

Houses accounted for $19.8 billion of the permit values.

Melbourne City Council was home to almost $5.7 billion of the permits — soaring from just under $4 billion in the previous financial year. But it was the City of Wyndham in the city’s west where the most permits were issued, with 7231 projects expected to cost about $2.3 billion.

The figures are a further nod to Victoria’s broader economy, which NAB Group Chief Economist Alan Oster described as one of the nation’s best at present.

However, after a lengthy period as a major contributor, the building industry was believed to be heading to a peak, Mr Oster said.

“It’s very strong, but we think it’s getting close to the peak,” he said.

Originally published as Melbourne sets new building record.

New Suburb Weir Views Affordable Housing Lots

BUYERS will be able to snare a piece of one of Melbourne’s newest suburbs for as little as $155,000.

EIG Developments has announced it will transform more than 57ha of dormant land in Weir Views into almost 600 affordable housing lots, a $45 million shopping precinct, and sports grounds.

A government school has also been proposed for the site — formerly part of Melton South — for “well into the future”.  the “growth corridor” between Melton and Caroline Springs.

The ‘Opalia’ development would have an end value of about $200 million and form “the heart of Weir Views and a contemporary anchor for Melton”, EIG chief executive George Georgiou said.

Other new suburbs being developed in the vicinity are Harkness, Cobblebank, Strathtulloh, Thornhill Park, Grangefields, Bonnie Brook, Aintree, Fieldstone, Fraser Rise and Deanside.

Taken from realestate.com.au

 

 

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Increasing Housing Supply

The Property Council of Australia welcomed a report released in December 2016 on housing affordability, saying governments need to focus on solutions that will make a difference to housing affordability for all Australians. The report was released by CoreLogic and Australian National University showing an increasing gap between household income and the amount needed for a 20 per cent deposit to purchase a home.

“This new report shows the problem for all to see – now we need solutions that will make a difference, not political distractions,” said Ken Morrison, Chief Executive of the Property Council. “Real solutions are required to ease housing prices for home buyers – and that is largely through increasing the supply of housing.” Melbourne house prices are 30% cheaper than Sydney prices and Melbourne has had 112,000 more building approvals over the last decade, illustrating that more supply results in lower prices. However, although Sydney has the highest shortage, Melbourne still needs more housing to meet demand.

The other factors that affect housing supply are unnecessary delays and costs, which drive up the costs of new dwellings.  Ken Morrison said that all levels of government, Commonwealth, State and Territories, need to take responsibility and strike a deal to incentivise reform to fix the housing supply problem.

It would certainly be good news to builders and suppliers to the building industry to see governments working together to help increase housing supply. The Ai Group and Housing Industry Association Performance of Construction Index (PCI) rise in February 2017 to 53.1 showed a pleasing increase in construction activity for housing, but the current forecast by HIA predicts a drop, levelling out to 172,000 dwelling construction starts in 2018. However, HIA also reported that demand associated with population growth remained reasonably robust, particularly in Melbourne, and that new house construction would remain at historically healthy levels despite dropping back from the record levels of today. Apartment and town house constructions would be the most contracted, falling from 111,810 to 69,940 starts. Detach house construction would be less affected, with starts dropping from 116,420 to 104,440.

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