MASTER Builders Victoria has said the latest updated building forecast data shows the state is well ahead of the national pack, recording the highest number of detached house building approvals over the past year.<\/p>\n
As of February 2021, Victorian approvals accounted for more than 30 per cent, or one third of all new detached house approvals in Australia, well ahead of New South Wales, which accounted for just 21 per cent of approvals.<\/p>\n
MBV CEO Rebecca Casson said while the data was a pleasing confirmation of the demand in the residential market, other areas in the sector appeared to not be sharing the same good fortune.<\/p>\n
\u201cCivil construction is generally doing well, with several major infrastructure projects driving activity forward, but high-density housing and non-residential building appears to be struggling amidst the changes in the economic environment over the past year,\u201d she said.<\/p>\n
\u201cThe impact of the pandemic on overseas migration into Victoria has been massive.<\/p>\n
\u201cWith Victoria normally a major target for international students who tend to stay in high-density accommodation, that market has virtually come to a standstill.\u201d<\/p>\n
In the three months to February 2021, the volumes of new approvals for apartment and unit buildings in Victoria was down 59 per cent on the previous year.<\/p>\n
\u201cThat\u2019s a huge hit on what had been a solid market sector, and which will undoubtedly take quite some time to recover,\u201d said Ms Casson.<\/p>\n
\u201cWe\u2019re also witnessing a decline in Victoria\u2019s labour market as Victorians appear to have headed out of the state after the pandemic damage to our local economy.\u201d<\/p>\n
Villawood Properties Executive Director Rory Costelloe said that Victoria\u2019s strong performance with house building approvals is due to a combination of the First Home Owner Grant, stamp duty exemption and HomeBuilder, but the challenges in other areas were on going.<\/p>\n
\u201cHigh-density building is low, because there are no Asian students and there\u2019s no incentive to buy high-density,\u201d Mr Costelloe said.<\/p>\n
\u201cThere\u2019s no stamp duty exemption for buying off the plan, it was abolished, so why buy apartments before they\u2019re built, especially if their quality is sometimes questionable?<\/p>\n
\u201cWith no incentives to buy before they\u2019re built, and no-one buying off the plan, the banks won\u2019t finance high-density building because they haven\u2019t got any pre-sales, so everything comes to a complete halt.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
MASTER Builders Victoria has said the latest updated building forecast data shows the state is well ahead of the national pack, recording the highest number of detached house building approvals over the past year. As of February 2021, Victorian approvals accounted for more than 30 per cent, or one third of all new detached house […]<\/p>\n