Construction in Victoria, like the rest of Oz is picking up nicely and this construction growth is expected to continue over the next few years. Victoria’s Planning Minister, Matthew Guy recently stated that the building boom should continue for some time because there are no signs of it abating anytime soon.
According to a statement issued by the Victorian Government in a press release, Mr Guy attributes the growth in sector to reforms instituted by the Napthine government in relation to residential and commercial area construction.
Guy referenced recent 2014 June quarter data released by the Australian Bureau of Statistics (ABS) and attributed the reflected growth to his government’s policies on zone reforms in both commercial and residential areas.
An article on www.architectureanddesign.com.au explains:
The Napthine Liberal government took over office in 2010 and the 2014 June Quarter ABS show that the state has now recorded three consecutive Construction Work Done increases.
Before they took office, the previous Labour government had recorded 13 successive rises in Construction Work Done statistics under their own Melbourne 2030 policies.
Mr Guy went on to state that the Victorian building boom wasn’t showing any signs of abating, which he attributed to strong planning policy, which he says has made the state’s building sector so strong.
Guy also explained that the government’s efforts encouraging greater density in the central city area has driven more construction jobs on high rise projects at the same time accommodating the states growing population.
Mr Guy said that zone reforms to residential and commercial zones had promoted confidence among builders and residents, making clear what type of buildings could be built and where, whereas under the Labor government the approach was more “anything goes”.
Guy explained in a statement:
“The Napthine Government’s strong planning policy has made Victoria’s building sector the strongest of any state.
“Victoria’s land supply program has been the most successful of any state, releasing 95,000 housing lots in metropolitan Melbourne alone. The strong competition between developers has dropped the median lot price from $225,000 in 2010 to around $191,000 now. This 15 per cent saving has benefited both homebuyers and builders.
Guy also went on to state:
“Land release in regional cities such as Geelong, Ballarat and the Latrobe Valley has continued to grow the construction sector in those communities,”
The Australian Bureau of Statistics released the Construction Work Done figures recently which shows that the value of building work, both residential and non-residential building jumped by 1.0 per cent as compared with the previous quarter. The increase in value of building work was around $6.39 billion according to the statistics.
Victorian construction growth has surpassed other states including NSW which rose by 10 per cent less than Victoria in the same quarter.