Read the full text of the Victorian Building and Construction Industry Outlook, March 2017 Quarterly Update here.

The first quarter of 2017 saw the Victorian economy continue to strengthen, while the national economy expanded only slightly.

The population in Victoria reached its highest ever recorded annual growth, with over 127,500 people added to the population in the year to September 2016 – a higher level of growth than any other state or territory. By comparison, New South Wales grew by 109,600 people over the same period.

Full-time employment grew across all states, with Victoria leading the job market strongly. The total number of full-time and part-time jobs for Victoria recorded 3.1 million as at the end of March 2017, representing a solid gain of around 3.2 per cent over the past year.

Housing affordability improved slightly over the March 2017 quarter, and as a result there was a decline in the average loan amount.

Residential-related construction work in Victoria recorded $6.63 billion in the December 2016 quarter, staying at the same level as the previous quarter, but representing a growth of 4.1 per cent on the same quarter of the previous year.

The total value of houses completed saw a rebound in the December 2016 quarter, having grown by close to 1.9 per cent, whereas the value of new units and apartments dipped by around 0.9 per cent and renovation work remained steady.

Over the March quarter, approvals for both new detached dwellings and multi-units remained steady. Compared with the same period in 2016, total approvals declined marginally by 315 dwellings, or -1.9 per cent.

Non-residential work is trending upwards. The total work done for the year ending in December 2016 recorded $9 billion, trending upward for the first time since the December 2015 quarter. There was up to 1.9 years of work in the supply pipeline in December 2016, down from nearly 2.2 years of work recorded at the end of September 2016.