Construction and housing grow to be Victoria's most important industries

The continued growth of the housing supply nationwide has been a massive point of conversation for home buyers and investors over the last few months, with a huge economic boost occurring throughout a number of states and territories. However, one of the most affected by these growths is Victoria, which has seen the property and construction industry skyrocket in strength - becoming the most important aspect of the state's growth.

Construction and housing provide a huge number of people with employment opportunities across the state, while increasing the number of homes available for sale in the region is integral to the sustained development of the state. As more and more people begin to call the area home, keeping the economics of the region as high and strong as possible is an essential task to be undertaken by the people of Victoria.

Property Council Victorian Executive Director Jennifer Cunich said the prosperity created by the development and growth of the region's industries would see ramifications well into the future, with nothing more important to economic development in the region than this sector.

"As the state's largest employer, greatest tax contributor and third biggest generator of economic output, the industry is at the heart of Victoria's vitality. Few Victorian industries can claim such a wide array of economic benefits. In fact, no other industry impacts as many areas of the economy as the property and construction industry does," said Ms Cunich in a November 26 statement. This could offer some incentive for buyers interested in securing a construction home loan to begin making moves into the local Victorian property market.

The sheer scale of the construction industry is enormous. For example, the sector represents 9.9 per cent of the entire Victorian employment figures, with a huge $10.5 billion invested in Melbourne and other Growth Areas each year. With these figures expected to remain strong, now could be a wonderful time to consider beginning an investment project in Melbourne - in order to support this growth over the coming years.

Healthy land sales support growth

Furthermore, a Housing Industry Association (HIA) and RP Data report released late last month (October 23) found growing developments within the land sales market of Australia. HIA Chief Economist Harley Dale said quarterly sales for residential land sales were up significantly, with the June 2014 quarter seeing these sales increase by 8.4 per cent over the previous quarter.

"Both capital city and regional land markets experienced higher turnover during the June 2014 quarter. Growth was stronger in the aggregate regional land markets - up 13 per cent compared to a 5.5 per cent lift for Australia's six state capitals," said Mr Dale in a October 23 statement.

"Consistent with signals from other housing indicators, the geographical recovery in residential land sales is broadening. That is an encouraging sign for detached and semi-detached dwelling construction in 2014/15."
RP Data Research Director Tim Lawless said this was the strongest result since June 2013, with these figures offering some insight into the strengthening residential construction market being experienced at the moment across the country.

"A rise in land sales implies a rise in detached housing construction about six months down the track which in turn provides a substantial multiplier for the Australian economy; more jobs, more building materials, home furnishings, appliances and white good sales," said Mr Lawless.

If you're interested in taking out a construction home loan and moving into the Victorian property market, now could be a great time to make moves into residential building projects in the region.

Image credit: Hai Linh Truong