The latest economic report for Victoria is now available.

Victoria’s strong population growth continues to act as the key factor to its economic growth, characterised by rising levels in employment and demand. This economic growth is reflected in the building and construction industry, with an expected surge in private investment towards commercial construction and industrial production.

For the full report, click here. Below are highlights of the report:

  • Victoria is the only state in 2017 to record population growth at above the national average, with more people having moved to Victoria in absolute numbers than NSW or the rest of the states and territories (excluding NSW) combined in the last three years. This is particularly impressive given Victoria is home to a little under 25 per cent of the population.

  • Private business investment in Victoria has expanded for five straight quarters in a row, with strong investment into new capital in the industrial and manufacturing sector for the first time in a number of years.

  • Employment growth in the construction sector is expected to be positive over the next 12 months, supported by a surge in commercial construction activity and a number of major transport infrastructure projects underway.

  • Unemployment is estimated to have fallen to 5.6 per cent in 2017-18 and is expected to continue to fall over the next few years as the economy picks up.

  • Despite the recent fall in Melbourne average house prices in March 2018, this has not been shared across all types of housing, meaning housing affordability remains an issue. The median price for a three bedroom house increased to $855,000 in the March quarter 2018, with the fall in average property prices generally being quarantined to the apartments market.

  • The value of non-residential construction activity over the year to March 2018 came close to 12 billion, which is the highest value of activity ever recorded in a 12 month period in Victoria’s commercial construction sector.

  • The value of engineering work has risen by 15.3 per cent over the year to March 2018. The total value of work was recorded at over $14.9 billion, which is the highest value of work in Victoria’s engineering sector recorded in a 12 months period, largely due to major government funded transport infrastructure projects.

  • Total value of work done in the construction industry is expected to top $49.5 billion in 2017-18 and top $54 billion in 2018-19.

  • By sector in Victoria, the value of work done in the year ending in March quarter 2018 was:
    • $23.1 billion in residential construction activity
    • $11.8 billion in non-residential construction activity
    • $14.9 billion in engineering construction activity