Applications for building permits in Victoria continued at record levels in 2018, with the cost of works in permits reported to the Victorian Building Authority (VBA) reaching almost $40 billion for the first time.
The value of building permits for the 12 months was $39.6 billion – up 10.7 percent, or $3.8 billion, on the previous year’s record $35.8 billion. In addition, the number of building permits for the calendar year also was a record – 113,287, up 0.4 percent on last year’s record 112,882 permits.
Building permit data released by the VBA for 2018 shows that the value of building permits exceeded $3 billion in 10 of the 12 months, including in August when the figure was almost $4 million, the highest monthly total ever. Only three years ago, in 2015, there were no months in which building permit activity reached $3 billion during the year.
Other key breakdowns of the annual VBA data reveals that all seven building use categories and all seven regions of Victoria reported increased value of building permits. The domestic (houses) category saw an 8.8 percent increase in the value of building permits to $20.2 billion – more than half the total value of building permits – and a 0.4 percent increase in the number compared to the previous year.
Growth in both the number and value of building permits reported in the rural regions outstripped the percentage growth in the metropolitan region (Melbourne). The number of permits reported in the rural region rose 4.7 percent, while the number of permits reported in the metropolitan region fell by 1.6 percent. By value, rural increased by 14.3 percent and metropolitan rose 9.9 percent over 2017.
According to the VBA, the two building use categories where the strongest growth occurred were retail, which was up 24.1 percent, and industrial, which climbed 22.6 percent.
The value of building permits by building use category in 2018 compared with 2017 showed:
The value of building permits by region in 2018 compared with 2017 showed:
NOTE: This information is drawn from and reliant upon information provided to the VBA by building surveyors who submit information relating to their building permit functions in accordance with the requirements of the Building Act 1993 and the Building Regulations 2018.
For more information visit www.vba.vic.gov.au
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