New data released this week shows Victorian home building approvals climbed 10.4 per cent in January and were 26.6 per cent higher than the same time last year, seasonally adjusted.

The figures show renewed confidence in the home building sector and we have not seen approvals this high in the first month of any year since 2011.

There were more than 2800 detached houses (seasonally adjusted) approved across the state in January, which is the highest figure in 31 months.

A further 2000 multi-unit homes were also approved in January, which will be further bolstered by Planning Minister Matthew Guy’s decision to fast track a further 2000 high rise apartments in Melbourne’s CBD alone.



The new data shows there were more new homes approved in Victoria during January than anywhere else in the country, with 4846 here compared to 4736 in New South Wales and 3542 in Queensland.



In trend terms, January was the eighth consecutive month that home building approvals increased in Victoria.

“This is great news for our industry and for our community as it will generate jobs and investment as well as helping Victoria meet the needs of a growing population without putting upward pressure on housing affordability,” said Master Builders CEO Radley de Silva.

“With the Reserve Bank today keeping official interest rates steady at record low levels and significant stamp duty savings for eligible first home buyers, now is a great time for Victorians to invest in a new home.”


The positive residential approval figures follows news of a surge in confidence among Victorian builders, with recently released Master Builders’ research showing confidence in the industry’s future prospects is at its highest point since mid-2010.

See also: Master Builders’ media release on home approval figures.