Victoria’s residential building market dethroned New South Wales as the dominant construction market in Australia this year, with first homebuyers significantly contributing to the outcome, according to the latest Housing Industry Association (HIA) Housing Scorecard.
Victoria took the top spot in the HIA Scorecard thanks to prosperous multi-unit dwelling construction.
HIA Executive Director Fiona Nield relayed the impact of the outstanding result to the market.
"The latest level of multi-unit commencements was more than double the state’s decade average," she said.
“It is not just apartments that are being built. The detached housing market in Victoria is also significantly stronger this year than over the past decade."
HIA highlighted that the high level of building activity in the sector has created nearly 50,000 jobs in Victoria. In fact, 10% of the surveyed Victorian workers are employed in the construction sector.
“This is the largest share on record going back to the early 1980s and highlights the importance of the building industry to the Victorian economy," Neild revealed.
More importantly, it was also noted that first home buyers accounted for the boom, with their market share higher by 17% than the decade average.
This is brought about by the incentives for first home buyers that the Victorian Government introduced in 2017's Budget. Referred to as the Streamlining for Growth” program, it has provided both metropolitan and regional Victoria with strategic planning support.
Moving forward, Neild is positive that by providing solutions to land shortages, construction in the state will remain flourishing.
