Record Number of Multimillion Building Permits Issued

Building Commissioner, Tony Arnel, said five years ago the list was predictable, containing the likes of Toorak and Brighton, but in 2006/07 trends have changed as new suburbs enter the list.

Flinders, on the Mornington Peninsula, joined the club with a total of six permits over the $1 million mark.

Hawthorn ran third with nine permits issued for building or renovating homes to the value of $1 million or more. The last time Hawthorn made this list, it scraped in at last place, after Toorak, Brighton and Portsea, in 2004/05 with six $1 million permits.

“Seven postcodes reporting five or more of the $1 million plus permits is a strong indicator of confidence in Melbourne’s luxury home market,” Mr Arnel said.

“It’s terrific that in just twelve months, Victoria’s property market has seen this list swell from four suburbs to seven.

“While Flinders, Malvern and Hawthorn have traditionally ranked well, they haven’t always been amongst the ranks of Toorak, Brighton or Portsea,” he said.

The total number of building permits with a value of $1 million (or more) issued for new single dwellings and alterations/extensions in Victoria reached 203 in 2006/07, an overall increase of 39 per cent on the previous twelve months.

In a tremendous leap of 61.4 per cent the highest value single dwelling permit issued was $9.2 million in 2006/07, up from $5.7 million in 2005/06.

Mr Arnel said the figures send a clear signal that now more than ever Victorians see bricks and mortar as a solid investment.

“While these figures represent the very tip of the permit value for single dwellings, the growth is reflective of what is happening more broadly,” he said.

“Overall, the 2006/07 figures are a positive indicator of the activity underway in the luxury end of Victoria’s building industry.”

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.

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