Victoria Surpasses New South Wales as Australia’s Biggest State for Construction

Victoria at NightVictoria has played second best to New South Wales when it comes to construction projects, but the Housing Industry Association’s latest figures showed that this is no longer the case. The booming apartment sector in Victoria helped it to surpass its long-time rival for almost three years. While the increase bodes well for Melbourne developers, strict building standards will still require them to use waterstops for concrete joints and other waterproofing products.

Top Two Markets

Victoria claimed the top spot for housing construction, following an 11 per cent decline in New South Wales’s multifamily projects in the 12-month period ending in May. New South Wales remained the top market for detached houses, but Victoria ranked closely behind.

Renovation projects and a bigger labour market also influenced the HIA’s results on its Housing Scorecard report. By the end of May, one out of 10 people in Victoria work in the construction industry. The Housing Scorecard’s results on each state’s residential construction markets provide a glimpse of economic performance.

Population Growth

An increasing population is often seen as the main reason behind a greater need for housing. Australian Bureau of Statistics’ data showed that residents in the country rose by 1.86 million in the last five years. Net overseas migration particularly drove the increase.

Victoria’s rise to the top spot on the HIA Housing Scorecard doesn’t seem to be a coincidence. The state has the fastest-growing population in the country at more than 2 per cent per year since 2012, and this occurred despite a lower net overseas migration from previous record highs.

Construction supplies will continue to be in demand due to the increase in housing starts in Victoria and New South Wales. The underlying impact of increasing housing approvals involves the need for waterproof homes, given the controversy on previous projects with leaky roofs and flooring.

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