Victoria has recorded its highest quarterly growth in detached building approvals since 1983, according to the latest report from the Housing Industry Association (HIA).
Approvals for the construction of detached dwellings increased by 36.1% annually in the first three months of the year.
"We anticipate a record volume of building work will commence this year, and into 2022, with more than 40,000 new detached homes to commence construction," said Fiona Nield, executive director for Victoria at HIA.
The renovation segment also reported a busy quarter, with approvals growing by 22.2%.
On the other hand, multi-unit approvals declined over the quarter. While approvals increase for the month of March due to the surge in approvals for high-rise apartments, this growth did not offset the declines reported in the previous months.
"This segment is prone to volatility. In the three months to March, multi-unit approvals remain lower by 30.6% compared to the same time the previous year," Nield said.
During the same quarter, Melbourne reached a new record for house and unit prices, according to the latest report from Domain.
Melbourne's median house price is expected to crack $1m by the end of the second quarter. Its unit segment is also poised to continue its upswing – the city was the only capital to record high for unit prices during the quarter.
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