VIC housing spike to boost employment
The recent increase in building activity will boost employment and confidence in the Victorian economy, says the Urban Development Institute of Australia (UDIA).
The Australian Bureau of Statistic’s (ABS) latest report shows the number of dwellings approved in November 2013 has risen in trend terms across all states, 3.7 per cent specifically in Victoria.
The ABS Building Approvals also show that dwelling approvals overall has risen for 13 months straight.
UDIA Victoria Executive Director Tony De Domenico says the sheer size of the property industry means any significant shift in activity will have a strong impact in many other areas of the economy, such as furniture, white goods and local services.
"In Victoria alone the development industry directly employs around 310,000 full time employees, contributes around 12 per cent of the state’s gross product and contributes $4.6 billion in taxes to all tiers of government," he says.
De Domenico says the market for new homes in Victoria are being stimulated by several factors such as high birth rate and net migration; and the Victorian Government’s policies such as first-home owners grants, lowering of stamp duty proposals and cutting of red tape to reduce costs in delivering housing.
He adds one of the biggest factors in the resurgence of the Victorian and national property market was the Federal Election last year which ended an era of uncertainty for both the development industry and Australian home buyers.
"The development industry in Victoria and nationally is one of the major economic levers that the State and Federal Governments can encourage to lift and sustain employment," he says.
"It is vital to maintain the reform of the industry and the cutting of red tape in the planning and building regulations to remove unnecessary duplication."
De Domenico says the changes to be implemented by the Abbott Government with the co-operation of all State Governments will clear any uncertainty in regards to seeking and complying with environmental requirements to bring land onto the market to meet housing demand.
"This is a major win for the community and the industry which should see an end to projects being held in limbo for up to several years and economic pressure to lift the supply of affordable housing," he says.
The UDIA says it expects to see strong growth of housing activity in regional and country areas throughout Victoria with a new consumer confidence especially around Geelong, Ballarat and Bendigo.
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