Victoria has overtaken NSW to become the state with the best residential building performance, according to a recent report by the Housing Industry Association.
The HIA’s bi-annual Housing Scorecard, released last week, aggregates the analyses of 14 key activity indicators in a scoring system to generate a league table ranking the relative strengths and weaknesses of residential building in each state.
These indicators include the value of work approved; total volume of private expenditure; the number of loans to first home buyers and non-first home buyers; the number of detached and multi-unit dwellings commencements; and the number of established house transfers.
With a state score of 88, Victoria bumped NSW from first place to claim the top spot in the rankings.
According to HIA economist Geordan Murray, Victoria commenced nearly 70,000 dwellings in 2015.
NSW was ranked second, with a state score of 83, followed by WA with a score of 67, and Queensland with a score of 65.
The Northern Territory was ranked fifth, moving up one spot in the rankings, followed by the Australian Capital Territory, ranked sixth with a score of 53.
Tasmania was ranked seventh with a score of 47 and South Australia’s ranking was eighth with a score of 44.
Mr Murray pointed out that while 220,000 dwellings were commenced in Australia last year – a new annual record – the significant divergences in residential building conditions across the country pose a challenge for policy makers.
“The eastern seaboard states have been the strongest performers, the mining states are sliding down the order, while South Australia and Tasmania are facing the most challenging conditions,” Mr Murray said.
“With housing-related policies high on the agenda in the federal election campaign, it is important that any new measures are assessed in the context of regional markets experiencing widely divergent conditions,” he said.