· Confidence among builders at its highest level in five years
· Residential building work has grown by 6 per cent in the March 2014 quarter
· Metropolitan growth area land sales at highest level in 4 years, indicating a home building boom in 2014, with land prices 15 per cent cheaper than at their peak
Victoria’s residential building sector is seeing massive growth, with multiple indicators showing a strong year ahead, Planning Minister Matthew Guy announced today.
“New data shows our building industry is set for a busy year in 2014,” Mr Guy said.
Economic confidence among Victoria’s builders is at the highest level since 2009, according to a new survey from the Master Builders Association of Victoria.
The Victorian Building & Construction Confidence Report for the March 2014 quarter shows that builders are ‘feeling much more positive about their own business prospects for the next six months, expecting solid improvements in their own business activity.’
The report also shows that employment intentions are in positive territory, with many builders intending to increase staffing levels over the next six months.
“Builders can be more confident in the Victorian economy because of a range of positive factors, including record infrastructure investment by the Victorian Coalition Government, and proactive planning reforms that are driving increased opportunities for building activity,” Mr Guy said.
New construction data from the Australian Bureau of Statistic shows that residential building work in Victoria has grown by 6 per cent to $4.1 billion in the March quarter of 2014.
The value of new home construction, including houses, units and apartments, grew by a massive 7.5 per cent in the quarter.
“Melbourne’s builders can rest assured that the Napthine Government is working to provide a strong construction sector into the future,” Mr Guy said.
“Strong central city construction activity, along with urban renewal areas identified in Plan Melbourne will provide an ongoing pipeline of major residential projects.”
A new housing report indicates home builders will also have a strong year in Melbourne’s outer suburbs.
The March 2014 report on Melbourne’s Growth Area Land Market, from Oliver Hume Research, reveals that land sales are at their highest monthly level in four years, and 50 per cent above the same period last year. Lot prices are down to $190,500, which is 15 per cent below the peak land price of
$225,750 in 2010.
Mr Guy said the Napthine Government’s planning policies had brought greater competition to the house and land market, resulting in lower prices for new homebuyers.
“Not since June 2010 has it been this affordable to purchase a new house and land package in Melbourne’s growth areas,” Mr Guy said.
“The Napthine Government’s strong policy of increasing land supply is now paying dividends for families and first home buyers, through lower land prices and more liveable suburbs, through development contribution reforms, by bringing state infrastructure contributions forward, and through community infrastructure grants to growing areas.
“The former state Labor government failed to release enough land during the population boom that started in 2008. When Melbourne’s population grew by over 90,000 people, only 2,400 housing lots were released that year.”
The Napthine Government has released over 83,000 housing lots in Melbourne’s growth areas since January 2011, and has committed to releasing another 50,000 lots during 2014.