Victorian Investment Construction Leads Nation

Market Insights
8 years ago
2 minutes


The Victorian building and construction industry is going strong, creating jobs and driving our state’s economy to lead the nation.

ABS data released yesterday shows that the total value of building approved increased by 26.8 per cent to $2.83 billion in October 2015, up 28.7 per cent over the year. In trend terms, the total value of building work approved lifted to $2.35 billion, up from $2.33 billion in September 2015.

The value of residential building approvals also rose by 36.0 per cent in October, up 44.3 per cent over the year.

Over the twelve months to October 2015, Victoria had the highest value of residential building approvals and the highest number of dwelling unit approvals, contributing 30 per cent of Australia's total dwelling unit approvals.

This follows ABS data last week which showed that construction work in Victoria increased by 14.0 per cent over the year, compared with a fall of 3.7 per cent nationally.

This compares with national falls of 3.6 per cent in the quarter and 3.7 per cent over the year. Over the year, the Victorian percentage increase was the highest of any state. The quarterly result was driven by residential and non-residential construction activity.

"We made a commitment that we would get Victoria moving again after four years of inertia and inactivity, and today, we have further proof that we are delivering on that promise," said Treasurer, Tim Pallas, "today’s strong building and construction data reinforces the increased optimism and confidence that is permeating through the Victorian economy. While there’s still more to do, Victorians have every reason to be feeling increasingly optimistic.”

It’s consistent with the sharp turnaround in Victoria’s economy since the Andrews Labor Government came to office. When the Labor Government came to office, Victoria had an unemployment rate of 6.7%. With more than 73,000 new jobs created, it now sits at 5.6% – the second lowest unemployment rate in the country.

Adding to these jobs, the Minister for Planning Richard Wynne has approved more than $4 billion of major project construction in the CBD, with 23 developments representing more than 7000 apartments and 1600 hotel rooms.

“This year, major inner city tower approvals have generated $4 billion in construction and there are another $4 billion worth of development applications in the pipeline.” 

The Government is also reviewing planning regulations for the inner city to make apartments more liveable and reduce shadowing and wind tunnels between towers.

Mr Wynne is working his way through the pile of development applications inherited after the previous Liberal Planning Minister, Matthew Guy, slashed the planning department’s staff, causing a year’s worth of backlog for inner city projects. In the 2015-16 Victorian Budget, the Labor Government delivered $1 million for planning staff and resources to cope with the backlog.