The trend in building approvals remains strong in Victoria, contrasting with the national trend, which indicates that approvals have been trending lower for a year.

In the three months to February, Victorian approvals increased by two per cent; of these, 48 per cent were multi-units and 52 per cent detached houses. House approvals in that period were 2.1 per cent greater than in the previous three months and nearly six per cent more than a year ago. Approvals of multi-units were two per cent greater than in the previous three months but were nearly nine per cent less than a year ago.

Despite a seasonally adjusted 12.8 per cent fall in approvals in February, the overall trend in dwelling approvals is strong in both houses and multi-units.

There was a big increase in Victorian non-residential approvals in February from $350 million to $651 million. Interestingly, this was caused by a rise of $276 million in public sector approvals, nearly all entertainment and recreation buildings. There was also an increase of $74 million in private sector approvals, mainly health and aged care, retail and education. Much of this strength is due to government spending rather than private sector spending, because many of the privately classified health projects are most likely for government, under public/private partnership contracts.

Consistent with the strong trend in approvals in Victoria:

• The trend value of new housing approved in February eased by 0.4 per cent and was one per cent lower than a year earlier.
• The trend in housing renovations also fell by 0.4 per cent but was 2.1 lower than a year ago.
• The trend in non-residential building increased by 4.5 per cent and was nearly 50 per cent greater than a year earlier.
• The trend in the value of all building approved rose by 1.2 per cent and was 11.7 per cent higher than a year ago.