MBV members in the housing sector will be interested to know that during 2021 the total number of residential building approvals exceeded 70,000. This is indictive of the sector beginning to return to pre-pandemic levels, with this being the highest number of approvals since 2018.
According to the Australian Bureau of Statistics (ABS), Victoria passed 70,463 new residential building approvals within a 12 month period to November 2021.
In appreciation of the released figures, MBV CEO, Rebecca Casson said “This demonstrates high levels of confidence and demand from the private sector as Victorians began to emerge out of lockdowns and into some form of normality”.
The proportion of building approvals for multi-unit buildings had picked up slightly from the previous month, accounting for 31 per cent of all building approvals in the 12 months to November 2021.
With international borders re-opening, it is expected that we will see steady growth in Victoria’s population in 2022, further influencing the positive growth of multi-unit building approvals.
Victoria’s building and construction industry continues to play a large part in leading the state’s COVID-19 recovery, supporting its population and economy. It is evident that our industry is important to the overall health of both the Victorian and national economies.
Recent GDP data indicated that during the September 2021 quarter, Australia’s economy shrank by 1.9 per cent, reflecting the effects of lockdowns in Victoria and NSW.
However, residential building has been one of the strongest parts of the economy and expanded by 11.4 per cent over the last year.
During the September 2021 quarter, non-residential construction was one of the best performers and grew by 3.9 per cent.
These figures demonstrate how important it was for our industry to largely remain open during lockdowns and how our sector will continue to act as a springboard for other sectors to get back on their feet.
Victoria saw 64,785 building approval works completed in the 2020-21 financial year, generating $25.7 billion of work in the 12 months to September 2021.
Non-residential work and civil construction work completed in the 12 months to September 2021 was valued at $14.1 billion and $18.7 billion, respectively.
The building and construction work completed was equivalent to 12.05 per cent of the Victorian economy as of the 2020-21 financial year.
In addition to this, the construction industry supports 113,867 businesses, of which 98.8 per cent are classed as small businesses employing less than 20 employees.
This is an increase of 5,319 businesses since 1 July 2020.
Our industry is the fourth largest employer across Victoria, providing 9.3 per cent of total employment.
In full-time terms, our contribution is more significant, as we are the second-largest full-time employer providing 11.6 per cent of full-time jobs in the state, a close second to professional, scientific and technical services (11.8 per cent).
MBV is committed to continue our on-going advocacy and representation work on behalf of our members, industry, and community – towards prosperous and sustainable future.