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{{propApi.successMessage}} {{region}} Change locationVictoria needs to follow South Australia's lead
Victoria needs to follow South Australia's lead
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The HIA Housing Scorecard report presents analysis which ranks each of the eight states and territories based on the performance of 13 key residential building indicators against their decade average, covering detached and multi-unit building activity, renovations, housing finance and rates of overseas and interstate migration.
“Victoria’s ranking has fallen in recent quarters as key indicators of building activity slow under the weight of rising interest rates,” added Mr Ryan.
“The volume of new homes commencing construction is failing to keep up with the consumer demands produced by the pandemic, and the recent rapid return of overseas migrants and students.
“Key leading indicators have deteriorated dramatically over the last year. New home sales in Victoria are down by almost 50 per cent.
“This has filtered through to lending and approvals data. Lending to owner occupiers in Victoria has been almost 20 per cent below the decade average, while approvals of new multi-units are down by 80 per cent.
“This will compound the shortage of housing that is causing rapid rent price growth.
“The RBA’s interest rate increases over the last year have weighed heavily on Victoria’s housing market, but responsibility must also lie with government.
“The South Australian government has shown a clear path to increasing the supply of new homes.
“South Australia topped the HIA Housing Scorecard, and its strong performance will be supported by policy changes announced in this year’s State Budget which included a reduction in stamp duty, the release of 25,000 blocks of land and an investment in public housing stock.
“Importantly, the South Australian government has concentrated on the basics and its measures respond to consumer demands for housing.
“Supporting new home building by reducing costs, attracting more investment and improving capacity is essential to ensure that an adequate supply of new homes commence construction,” concluded Mr Ryan.
State scores
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Major changes to Labour Hire Licensing Act
The Victorian Government has introduced the Labour Hire Legislation Amendment (Licensing) Bill 2025 (the Bill) into parliament. It amends the Labour Hire Licensing Act 2018 to address concerns about criminality in the construction sector.
Policy changes see spike in home building
“Sales of new homes for construction jumped 25.9 per cent in September following a series of policy changes, including a cut to the cash rate in August, removal of Lenders Mortgage Insurance and easing in planning restrictions,” stated HIA Chief Economist, Tim Reardon.
Victorian house building hits new low
“Victoria commenced construction on just 7,650 new detached houses in the June quarter 2025, the weakest quarter for the state in almost 12 years and a new low for this cycle,” stated HIA Executive Director Victoria, Keith Ryan.
Building Permit Levy changes you need to know about
The Victorian Government has introduced the State Taxation Further Amendment Bill 2025 into Parliament. This Bill includes a number of tax changes, including the much discussed congestion levy changes.