ABS figures an indicator of Victoria's construction strength

Figures have been released by the Australian Bureau of Statistics which show that through the March quarter building work has increased markedly in Victoria. Released as part of Urban Taskforce Australia's most recent commentary on the development industry, the statistics underpin the importance that construction and particularly apartment construction has in bolstering the overall Victorian economy which has taken a number of manufacturing-based blows in recent years.

The key figures that the Urban Taskforce uses to assess production is the value of building work per capita. Victoria produced $1172 per person in the March quarter while NSW only produced $808 per person.

In the last quarter NSW has moved downwards while Victoria has moved upwards.

Urban Taskforce CEO, Chris Johnson
Total building value per capita. Image courtesy ABS

While building construction expenditure is an accurate measure of current activity, it is a result of planning approvals made a year or more earlier. The building construction expenditure therefore needs to be compared with future work flowing from current approvals.

In overall terms the building work activity across Australia is robust which is good news for the jobs that flow from this.

Urban Taskforce CEO, Chris Johnson

As touched upon above, Victoria's current strength is a reflection of the efficient (some would no doubt say liberal) planning approvals process under the previous State Government which only now is starting to bare fruit if inner city Melbourne is used as a prime example. The heightened levels of construction is also a reflection of the multitude of foreign and foreign-backed developers who have been present in Melbourne for a number of years and are only comparatively starting to make their presence felt in Sydney, Australia's supposed global city.

While some fundamentals of apartment living are currently under the microscope, Planning Minister Richard Wynne has kept the approvals ball rolling with a host of high profile project approvals in recent weeks. Add the insatiable appetite of new developers seeking a piece of the Melbourne pie and Western Australia's general economic slowing post the mining boom and it's quite likely that in months ahead Victoria will take the mantle of achieving the highest total building value per capita state across Australia.

Apartments to the fore

Of course Victoria's construction strength is reflected in greater Melbourne's vista with approximately 130 tower cranes currently plying their trade. The vast majority of these cranes are dedicated to the delivery on new apartment projects with the latest project receiving its crane being Assembly North Melbourne above.

With a host of large-scale, long term projects such as Fishermans Bend, Footscray's Joseph Road Precinct, Toorak Park and Caulfiled Heath in their construction infancy, Melbourne and Victoria's construction strength looks set to grow further.

My Real Estate Mate logo

Development & Planning

Friday, October 28, 2016 - 00:00
The route 11 tram not so long ago used to be known as the route 112 which ran from West Preston to St Kilda. The old 112 route was split in two (routes 11 and 12) and route 11 now runs from West Preston and terminates at Victoria Harbour in...

Policy, Culture & Opinion

Thursday, October 20, 2016 - 14:30
On Monday 24th of October, the iCities: World Class CBDs series conference kicks off. First held in Kuala Lumpur, this year's conference is to be held at the Langham Hotel on Southbank. iCities is owned and operated by iProperty Group, a network property under the REA Group umbrella brand. Over...


Visual Melbourne

Wednesday, August 31, 2016 - 17:00
Melbourne’s architectural landscape is a wonderful juxtaposition of modern and Victorian architecture. Although the CBD has been peppered with many skyscrapers, its historical structures have won Melbourne the title of “Australia’s most European city”. Perhaps the most striking example of this juxtaposition between old and new is the Coops Shot...

Transport & Design

Thursday, October 20, 2016 - 07:00
108 Leicester Street is a collection of eight multi-level Fitzroy townhouses that have been designed to respond to the changing face of multi-residential living in Melbourne. The hybrid inner-city dwellings combine developer/builder FOURSQ with Melbourne firm BKK Architects. The design acknowledges the housing typologies of the development's Fitzroy neighbourhood with...

Sustainability & Environment

Wednesday, October 5, 2016 - 00:00
The proposed new Melbourne Conservatorium of Music (MCM) on Sturt Street is shaping to become much more than a cutting edge venue. While the project has been given coverage to date across a range of mediums, very little has been said regarding the project playing an integral part in the...