New building permit records set in 2021

Victoria’s building industry has recorded another year of substantial growth, with new data released by the building regulator highlighting near $4 billion increase in the value of works.

The Victorian Building Authority (VBA) data shows 127,792 building permits, worth $44.6 billion were issued in 2021, an increase of more than 14,000 (or 12.66 per cent) from the previous year.

The cost of domestic building permits issued increased by more than $4.3 billion, up from 96,367 in 2020 to 109,367 in 2021.

This is the first time that domestic permits have topped 100,000 in a calendar year in Victoria.

The number of permits issued increased in all parts of the state, with the biggest increase seen in the outer suburbs of Melbourne, followed by the North Central region and Gippsland.

VBA Chief Operations Officer Jocelyn Crawford said another year of strong growth was a positive sign for the building industry.

“Victorians have experienced a challenging two years, but as a community we have remained resilient and the industry has continued to grow, proving it to be the backbone of the state’s economic future,” she said.

“These figures are promising and in an environment of development and economic progress, demonstrate the importance that standards are upheld.”

While the government works on the shortage of materials impacted by the pandemic – the growth has continued.

The number of permits for building extensions grew 11.22 per cent (up to 11,574 from 10,406), totalling more than $638 million in works.

In the first six months of the current financial year, building permits issued grew 7.56 per cent compared to the same period in 2019-20.

Ms Crawford said the VBA would maintain its vigilance on practitioners, to ensure all work is done safely and is compliant with the Building Act.

“We are here to keep Victorians safe and protect both consumers and practitioners,” she said.

“As we see growth, we must also work together to make sure the rules and processes are followed, and compliance is upheld.”

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