BRIMBANK seems poised to continue its building boom, based on data showing that Victoria leads the nation in the value of building work approved.
More than $1.52 billion of property work was given the green light in Victoria in the 12 months to February, placing Melbourne as the country’s fastest-growing city.
The acting executive director of the Housing Industry Association, Caroline Lawrey, said she expected this would continue, thanks to continued confidence in the new home market.
“Confidence is based on the recent decision (that) there be no further interest rate rises and also the announcement to extend and increase the first homebuyers’ bonus,” she said.
“Consumer confidence is likely to increase activity in growth corridors such as Brimbank.”
She said the HIA was waiting to see how the State Government’s changes to the first homebuyers’ grant would affect buyers.
The grant was increased from $3000 to $5000 for building a new home and stamp duty on existing homes was cut by one per cent on January 1.
However, Ms Lawrey said Victoria could still easily slip into a housing crisis, despite the favourable home-buying conditions.
She said any further regulatory costs or pressures on the price of land could further widen “the chasm of housing affordability”.
“The reality is that 18.4 per cent of Victorians are in housing stress — paying more than 30 per cent of their income on rent or a mortgage,” she said.
The Australian Bureau of Statistics figures show the total value of building work approved in Victoria increased by 15.9 per cent compared with 13.9 per cent nationally in the 12 months to February.
The statistics also suggest the area might be recovering from a downturn in building activity last year.
Brimbank City Council figures show that building approvals fell by 144 from 1845 in 2004-2005 to 1701 in 2005-2006.
The value of building work also fell, from $241.25 million in 2004-2005 to $222.97 in 2005-2006.
Ms Lawrey said the building industry was still strong, particularly in growth corridors including Wyndham.
