Inner Melbourne continues to have the largest proportion of commercial, hospital/healthcare, residential and retail, both for permit numbers and reported cost of works. While Outer Melbourne has the largest proportions of domestic and industrial for both permit numbers and reported cost of works. Interestingly in 2018, public building projects had very similar proportions of permits numbers in Inner Melbourne (33%) and Outer Melbourne (34%) however reported cost of works was slight great in Inner Melbourne (42%) than Outer Melbourne (36%). BUILDER TYPE Victoria continues to have a significant reliance on owner builders. While only 3% of the cost of works is reported for registered owner-builders, 14% of all building permits issued are to registered owner-builders. Registered builders make up 69% of building permits issued and 48% of reported costs of works.
SINGLE DWELLINGS – CLASS 1A / REGISTERED BUILDER With a large proportion of BDAV members involved in Class 1a projects with registered builders, further analysis was requested for all building permits with this specific criteria. Analysis shows for: – New dwellings (Class 1a and Registered Builder) across the
State are smaller however are more expensive than 2017. The average floor area for these builds are: 257sqm at $1,907 per sqm (273sqm at $1,825 per sqm: 2017) – Extensions to existing dwellings (Class 1a and Registered)
across the State have followed the trend of new dwellings with the average floor area added for these builds reducing in area but increasing in cost of works to an average of 64sqm at $3,483 per sqm (79sqm at $3,112 per sqm: 2017) The table below covers this analysis for each of the regions. It shows that new dwellings in Outer Melbourne are larger while extensions are at their largest in the North East. Gippsland takes the title for the smallest average floor area for both new dwellings and extensions.
However, it is pleasing to see that the legislation changes introduced in 2016 to tighten up the requirements for owner builders, has seen the percentage of owner builder permit applications decrease for the second year running. Those changes included:
Inner Melbourne has the most expensive per sqm for new builds and extensions; while North West is the cheapest for new; and North East cheapest for extensions.
– a restriction of one project every five years – a compulsory online assessment – a requirement that owner-builders must use
Class 1a & Registered Builder
registered practitioners.
New dwellings
Avg Floor area added (sqm)
Avg $ per sqm
Extensions
Avg Floor area added (sqm)
Avg $ per sqm
RELIANCE ON OWNER BUILDERS (% PERMITS ISSUED) Reliance on Owner Builders (% Permits issued) 30%
25%
20%
15%
Gippsland
304
$983
47
$1,768
Inner Melbourne
394
$2,357
89
$3,707
North Central
266
$1,269
67
$1,901
North East
268
$1,390
72
$1,543
North West
250
$1,257
62
$1,976
Outer Melbourne
334
$1,359
67
$1,776
South West
238
$1,528
108
$1,749
Average
257
$1,907
64
$3,483
10%
5%
0%
2009
2010
2011
2012
2013 Owner Builders
Owner Builders
N E W S . B D AV. O R G . AU
2014
2015
2016
2017
2018
Domestic Building Permits
Domestic Building Permits
I ndustry N ews
29