Intersect, July 2019

Page 29

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


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