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{{propApi.successMessage}} {{region}} Change locationVictorian home building continues to rise with record numbers of homes under construction
Victorian home building continues to rise with record numbers of homes under construction
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Commencements of detached homes rose by 5.3 per cent in the first quarter of 2022 in Victoria, from 10,005 to 10,539, with a record of almost 30,000 homes under construction. Total commencements for the last 12 months reached 46,651, also nearly a record high level.
“While there’s been a slowing in the quarterly growth figures, the volume of new homes under construction in Victoria is still 54 per cent higher than pre-pandemic,” stated HIA Victorian Executive Director, Fiona Nield.
“It is also likely that home building activity in the first quarter of 2022 was held back by staff shortages associated with the Omicron outbreak and the higher than usual uptake of holiday leave.
“Victoria also managed to complete 10,162 detached homes in the quarter, nearing record highs and just 1.1 per cent down on the previous quarter. This represents the gradual but continued progress being made in the HomeBuilder pipeline and this should help gradually reduce the pressure on supply of materials and labour.
“The volume of detached home work under construction is more than 50 per cent above pre-pandemic levels.
“This has been driven by the combination of the HomeBuilder grant, reduced personal expenditure during COVID and record low interest rates.
All the extra time Victorians were spending at home either working or locked down, resulted in a pandemic trend towards creating greater space and amenity. This has kept demand for new housing and renovations elevated post HomeBuilder. Other indicators, such as building approvals, finance approvals and new home sales, continue to show a strong volume of work entering the pipeline.
“In addition, the multi-units’ market is continuing to strengthen. Multi-unit commencements increased by 6.7 per cent in the March 2022 quarter to be 24.0 per cent up in the last 12 months compared to the previous year. This improvement has been seen in both high-rise and medium density units.
“With interest rates and the cost of building increasing rapidly, affordability constraints will increasingly push home buyers back towards more affordable, higher density living. The return of the overseas migrants, students and tourists that Victoria depend upon more than any other state or territory, will help further strengthen the multi-units market.
“The combination of all these demand and supply factors will keep Victorian builders busy in 2023” concluded Ms Nield.
Snapshot of building activity pipeline - houses
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Support for tradies to take on apprentice critical to delivering more homes for Australia
“Tonight’s Budget-reply by the Coalition included a key measure to provide $12,000 of financial support for small businesses and tradies to take on an apprentice and support them through their trade” stated HIA Managing Director, Jocelyn Martin.
Own goal housing policy
Treasurer Jim Chalmers, in his Budget speech stated: “And we’re easing pressure on the housing market by banning foreign investors from buying established homes and cracking down on foreign land banking as well.
Budget a missed opportunity to deliver a concrete housing plan
“The Albanese government’s fourth Federal Budget provided a critical juncture to double down and pull out all stops to address the nation’s crippling housing crisis, but, yet again it was a case of focusing on small target solutions, “ Managing Director HIA Jocelyn Martin said today.
If you can’t map the land, you can’t deliver the homes
“Inadequate planning for growth in the demand for land and housing has contributed substantially to the excessive cost and significant undersupply of new homes being felt across all states and territories,” said Mike Hermon, HIA Executive Director Planning & Environment.