Powering the state with over a quarter of a million jobs and fueling billions in economic growth, Victoria's building industry is a dynamic engine of opportunity and transformation, as revealed by its latest compelling statistics.
Key Takeaways
- In the financial year 2022-23, the Victorian building and construction industry directly employed 256,400 people, accounting for 8.2% of total state employment.
- As of June 2023, the construction sector in Victoria had 142,000 full-time workers in residential building subsector alone.
- Between 2021 and 2023, the number of apprentices and trainees in Victoria's building industry increased by 12.5% to 28,700.
- In 2022-23, Victoria approved 47,200 new residential building permits.
- Total value of construction work done in Victoria reached $72.4 billion in 2022-23.
- Residential building commencements in Victoria totalled 38,900 dwellings in 2023.
- The total value of building work done in Victoria increased by 6.2% to $72.4 billion in 2022-23.
- Construction contributed 7.8% to Victoria's gross state product in 2022-23, valued at $45.2 billion.
- Residential construction generated $42.1 billion in turnover for Victorian firms in FY2023.
- Victoria's residential building approvals were valued at $32.5 billion in 2022-23.
- Average new detached house size in Victoria was 220 sqm in 2023.
- Melbourne's median house build cost reached $420,000 in mid-2023.
- Commercial office construction value was $3.2 billion in Victoria 2022-23.
- Melbourne Airport expansion projects valued $5.1 billion commenced in 2023.
- Retail centre developments totalled 280,000 sqm in Victoria FY2023.
Victoria's building industry employs many, faces skill shortages, but remains economically vital.
Commercial/Infrastructure
- Commercial office construction value was $3.2 billion in Victoria 2022-23.
- Melbourne Airport expansion projects valued $5.1 billion commenced in 2023.
- Retail centre developments totalled 280,000 sqm in Victoria FY2023.
- Level Crossing Removal Project delivered 50 crossings in Victoria by 2023.
- Data centre construction floor space reached 120,000 sqm in Victoria 2023.
- Hospital expansions added 1,200 beds across Victoria in 2022-23.
- Suburban Rail Loop East stage work valued $4.6 billion underway 2023.
- Logistics and warehousing new supply was 650,000 sqm in Melbourne 2023.
- University campus building projects totalled $1.8 billion in Victoria FY2023.
- West Gate Tunnel Project progressed to 65% completion in 2023.
- Hotel developments approved 2,800 rooms in Victoria 2022-23.
- Metro Tunnel project tunnelling completed 9km under Melbourne by 2023.
- Manufacturing facility builds valued $2.4 billion in regional Victoria 2023.
- Sports stadium upgrades totalled $900 million spend in Victoria FY2023.
- Freeway extensions added 45km of lanes in Victoria 2022-23.
- Film studio complexes under construction spanned 50,000 sqm in Melbourne 2023.
- Renewable energy grid connections supported 2.5GW new capacity in Victoria 2023.
- Justice precinct builds valued $1.1 billion commenced FY2023.
- Docklands commercial precinct added 150,000 sqm office space 2023.
- North East Link tunnel project at 25% complete with $10bn budget in 2023.
- E-commerce fulfilment centres totalled 200,000 sqm new in Victoria 2022-23.
- Cultural venue renovations cost $650 million across Victoria FY2023.
- Airport rail link planning advanced with $12bn projected cost in 2023.
- Biotechnology lab spaces grew by 40,000 sqm in Parkville precinct 2023.
- Sewerage treatment plant upgrades valued $1.3 billion in Victoria 2022-23.
Commercial/Infrastructure Interpretation
While juggling enough simultaneous billion-dollar projects to give even Midas pause, Victoria is furiously building everything from data centres to hospital beds, proving the state’s true motto might be "Under Construction Since 2022."
Construction Activity
- In 2022-23, Victoria approved 47,200 new residential building permits.
- Total value of construction work done in Victoria reached $72.4 billion in 2022-23.
- Residential building commencements in Victoria totalled 38,900 dwellings in 2023.
- Non-residential building approvals in Victoria were valued at $11.2 billion in 2022-23.
- Engineering construction work in Victoria amounted to $28.6 billion in FY2023.
- Melbourne saw 22,400 housing starts in the year to June 2023.
- 1,250 multi-unit residential projects were under construction in Victoria mid-2023.
- Road and bridge construction activity in Victoria totalled $4.8 billion in 2022-23.
- Detached house completions in Victoria numbered 24,100 in 2022-23.
- Hospital and health building projects valued $2.1 billion commenced in Victoria 2023.
- Retail and commercial floor space under construction in Victoria was 450,000 sqm in 2023.
- Victoria's building industry completed 5,600 apartment buildings in 2022-23.
- Renewable energy construction projects totalled 15 major sites in Victoria 2023.
- Alterations and additions work in residential sector was $9.7 billion in Victoria FY2023.
- School building projects in Victoria valued $1.4 billion in 2022-23.
- Industrial warehouse construction commencements reached 2.8 million sqm in Victoria 2023.
- Heritage building restorations numbered 320 projects worth $450 million in 2023.
- Water infrastructure construction in Victoria totalled $2.3 billion in FY2023.
- Office building completions in Melbourne CBD were 120,000 sqm in 2023.
- Townhouse and semi-detached starts hit 9,200 in Victoria 2022-23.
- Rail infrastructure projects under way spanned 450 km in Victoria 2023.
- Aged care facility building approvals valued $850 million in Victoria FY2023.
- Demolition permits issued for 8,400 structures in Victoria 2022-23.
- High-rise residential cranes active in Melbourne totalled 78 in mid-2023.
- Public housing construction delivered 2,100 new homes in Victoria 2023.
Construction Activity Interpretation
Victoria is frantically building everything from apartments to hospitals with cranes dotting the skyline, yet it still feels like the state is playing a desperate, multi-billion-dollar game of catch-up to house its growing population.
Economic Value
- The total value of building work done in Victoria increased by 6.2% to $72.4 billion in 2022-23.
- Construction contributed 7.8% to Victoria's gross state product in 2022-23, valued at $45.2 billion.
- Residential construction generated $42.1 billion in turnover for Victorian firms in FY2023.
- The industry's total wages bill in Victoria reached $18.9 billion in 2022-23.
- Export value of Victorian building services and materials was $1.2 billion in 2023.
- Average profit margin for Victorian builders was 4.8% in 2022-23.
- Government spending on construction in Victoria totalled $15.7 billion in FY2023.
- Investment in non-residential building reached $26.4 billion in Victoria 2023.
- The multiplier effect of construction spending was 2.8 times in Victoria's economy 2023.
- Bankruptcy rate among Victorian builders was 1.2% in 2022-23.
- Insurance premiums for builders averaged $45,000 per firm in Victoria 2023.
- Tax revenue from construction sector was $6.3 billion to Victorian state coffers in FY2023.
- Cost escalation in Victorian projects averaged 12.4% year-on-year to 2023.
- Small businesses (under 20 employees) generated 62% of industry turnover in Victoria 2023.
- R&D expenditure by Victorian construction firms totalled $320 million in 2022.
- Productivity growth in Victoria's building industry was 1.1% in 2022-23.
- Venture capital investment in proptech startups in Victoria reached $180 million in 2023.
- Fuel and energy costs represented 8.7% of total project costs in Victoria 2023.
- The sector's GDP contribution grew 4.3% nominally in Victoria FY2023.
- Subcontractor payments totalled $38.2 billion across Victorian projects in 2022-23.
- Inflation-adjusted value of work done rose 2.1% in Victoria's construction 2023.
- 1,450 firms exited the market, costing $2.1 billion in value in Victoria 2022-23.
- Digital transformation spend by industry was $450 million in Victoria 2023.
Economic Value Interpretation
The Victorian building industry stands tall as a mighty $72 billion engine of the state, proving that even while churning out immense value and tax revenue, it operates on such razor-thin margins that it's simultaneously building our future and carefully sidestepping its own financial potholes.
Employment
- In the financial year 2022-23, the Victorian building and construction industry directly employed 256,400 people, accounting for 8.2% of total state employment.
- As of June 2023, the construction sector in Victoria had 142,000 full-time workers in residential building subsector alone.
- Between 2021 and 2023, the number of apprentices and trainees in Victoria's building industry increased by 12.5% to 28,700.
- Women represented 13.4% of the Victorian construction workforce in 2023, up from 11.2% in 2020.
- In 2022-23, Victoria's building industry saw 15,200 job vacancies, a 25% rise from pre-pandemic levels.
- The average weekly wage for building tradespersons in Victoria was $1,856 in May 2023.
- Over 45% of Victorian construction workers were aged 25-44 in 2023, with a median age of 41 years.
- Indigenous workers made up 2.1% of Victoria's building industry employment in 2022.
- In 2023, 68% of Victorian building firms reported skill shortages in carpentry and bricklaying trades.
- The construction sector contributed to 7,800 new jobs in regional Victoria during 2022-23.
- Labour turnover in Victoria's building industry was 18.3% in 2022, higher than the national average of 15.1%.
- 22,500 self-employed contractors operated in Victoria's residential construction in 2023.
- Engineering professionals in Victorian construction numbered 19,400 in 2023.
- Youth under 25 comprised 9.2% of the building workforce in Victoria as of 2023.
- Migrant workers accounted for 32% of Victoria's construction employment in 2022-23.
- In 2023, 14.7% of Victorian builders were licensed female practitioners.
- Construction managers in Victoria earned a median salary of $148,000 annually in 2023.
- The industry trained 4,200 new entrants via TAFE programs in Victoria in 2022.
- Overtime hours in Victorian building averaged 4.2 hours per week per worker in 2023.
- 76% of Victorian construction workers were full-time in 2023.
- Plumbers in Victoria's building sector totalled 16,800 licensed professionals in 2023.
- Job growth in Melbourne's construction was 3.8% year-on-year to June 2023.
- Electricians numbered 24,100 in Victoria's construction industry in 2022-23.
- 11% of workers in Victoria's building industry held supervisory roles in 2023.
- Casual employment in construction Victoria was 24.5% of total in 2023.
- Bricklayers employment grew by 8% to 12,300 in Victoria 2022-23.
- 3,900 project managers worked in Victoria's building sector in 2023.
- Underemployment rate in Victorian construction was 5.2% in 2023.
- Painters and decorators totalled 18,200 employed in Victoria 2023.
Employment Interpretation
Victoria's construction industry is robustly humming along—building our state, employing over a quarter of a million people (though we're still hunting for thousands more), paying decently, slowly but surely welcoming more women, and desperately hoping someone, for the love of bricks and mortar, takes up a trowel.
Residential Sector
- Victoria's residential building approvals were valued at $32.5 billion in 2022-23.
- Average new detached house size in Victoria was 220 sqm in 2023.
- Melbourne's median house build cost reached $420,000 in mid-2023.
- 62% of new Victorian homes were detached houses in 2022-23.
- Time to build a standard house in Victoria averaged 10.2 months in 2023.
- Low-rise multi-residential approvals totalled 14,200 units in Victoria FY2023.
- Home renovations expenditure hit $12.4 billion in Victoria 2022-23.
- 28% of new homes in Victoria incorporated solar panels in 2023.
- Affordable housing starts numbered 1,800 units in Victoria 2023.
- Average lot size for new estates in regional Victoria was 650 sqm in 2023.
- Prefabricated home market share reached 15% in Victoria FY2023.
- 4,200 social housing dwellings were completed in Victoria 2022-23.
- New home sales in Victoria totalled 112,000 contracts in 2023.
- Bathroom renovations averaged $28,000 cost per project in Victoria 2023.
- 72% of Victorian new homes met 7-star energy rating in 2023.
- Kitchen extensions comprised 35% of residential alterations in Victoria FY2023.
- Geelong region saw 3,900 new dwelling approvals in 2022-23.
- Modular housing deliveries increased 22% to 2,100 units in Victoria 2023.
- Owner-builder permits issued totalled 7,200 in Victoria 2022-23.
- Average new townhouse price was $650,000 in Melbourne 2023.
- 1,650 tiny homes were built in Victoria in 2023.
- Extensions added 1.2 million sqm to existing homes in Victoria FY2023.
- Passive house certifications numbered 180 new in Victoria 2023.
- Bendigo residential starts totalled 1,800 dwellings in 2022-23.
- Dual occupancy developments approved 2,400 sites in Victoria 2023.
- Net-zero ready homes comprised 8% of new builds in Victoria FY2023.
Residential Sector Interpretation
While we're building fewer houses than we'd like, Victoria's construction industry is impressively forging ahead by building them smarter, smaller, and with more solar panels, even if the wait and the price tag might make you consider a very fancy tent instead.
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