Residential property construction declines as retail rises in Melbourne
Residential property construction has declined in Melbourne over the past year to February, ...
Residential property construction has declined in Melbourne over the past year to February, according to a report from Master Builders Australia (MBA).
In that time, there were 1,727 fewer building permits issued for residential properties, while building investment across the outer-east dropped from $3.1 billion to $2.7 billion.
"It's clear that local builders continue to face a tough economy and ever changing regulations," said MBA executive director Brian Welch.
"Local residents rely on our industry to build their homes and workplaces and to deliver new or improved community assets like schools, hospitals and roads."
On the other hand, investment in retail works was up 58 per cent to $317.4 million.
Recent data released by the Australian Bureau of Statistics showed that Melbourne has the highest population growth of all the capital cities over the 2011-2012 period, up by 77,200 people.
The inner-Melbourne area was also home to the largest increase in density in that time, with an extra 860 people per square kilometre.
With these kinds of population growths across the city, buying a house could become increasingly difficult if the construction sector does not keep up with the rate of new citizens.