The Victorian Building Authority reports that the value of building permits in Victoria in 2014 was a record $26.9 billion, 11 per cent more the previous high of $24.2 billion reported in 2011.
Chief Executive Officer of the Victorian Building Authority (VBA) Prue Digby said the record building permit activity reported to the Authority in 2014 was 14 per cent higher than the $23.5 billion reported in 2013.
Digby explained that a building permit was required to be issued by a building surveyor for all building work unless there was an exemption for the proposed works under the Building Regulations 2006. The building surveyor is obligated to report details of each permit, including the value of works to the VBA at the end of each month.
According to the data provided to the VBA in 2014, the number and value of building permits were higher for all seven regions of the state in comparison with 2013.
Region-wise figures reveal that the 21 per cent increase in value of building permits in Rural Victoria outstripped the 13 per cent increase in Metropolitan Melbourne. While the Inner Melbourne region reported the highest value of building permits at $12.3 billion, the South West region in Rural Victoria reported $1.9 billion. The North Central region had the biggest percentage growth in value, rising 33 per cent to $1.3 billion when compared to the previous 12 months.
Value of building permits by building use 2014 Vs. 2013:
Domestic rose 18.3 per cent to $13.7 billion; Residential (including high rise) increased 8.3 per cent to $4.1 billion; Commercial fell 13.0 per cent to $2.9 billion; Retail increased 14.9 per cent to $2.0 billion; Industrial jumped 28.0 per cent to $728 million; Hospital/Healthcare leapt 119.2 per cent to $1.7 billion; and Public Buildings rose 2.5 per cent to $1.8 billion.
Value of building permits by region 2014 Vs. 2013:
Inner Melbourne increased 11.5 per cent to $12.3 billion; Outer Melbourne rose 14.3 per cent to $8.8 billion; Gippsland was 12.3 per cent higher at $812 million; North Central leapt 33.0 per cent to $1.3 billion; North East rose 9.7 per cent to $680 million; North West increased 21.8 per cent to $1.2 billion; South West jumped 21.9 per cent to $1.9 billion.
Additionally, the VBA’s 2014 building permit activity report shows that on a municipality basis, the City of Melbourne had the highest value at $3.4 billion, followed by the City of Wyndham ($1.4 billion) and the City of Greater Geelong ($1.3 billion).
The largest building permit in Victoria in 2014 was for the construction of a laboratory, office, a plant and equipment building and storage and ancillary buildings valued at $210 million in the Horsham Rural City Council. The second largest building permit reported state-wide was valued at $148.9 million for the Epworth Geelong Hospital building at Waurn Ponds in the City of Greater Geelong.