The following building cost indexation factors are provided for Victorian Government departments and agencies for financial reporting purposes only. These factors generally represent the increase or decrease in building costs for government type built assets.
Depreciation rates have not been applied to the factors. The figures are provided as an indicative average view of building costs and should only be used as a guide to assess whether a material change in building costs has occurred or not. Please note that the figures are indicative only and may vary depending on the item of construction or the exact location of the asset.
Please refer to FRD 103 Non-financial physical assets for further explanation of their use in relation to financial reporting revaluation.
To allow for possible differences between Regional and Metropolitan costs, VGV have looked at numbers for an area around Metropolitan Melbourne (a semi-circle approximately from Apollo Bay around to Ballarat to Shepparton around to Warragul and down to the coast) and the balance of Victoria called Rural/Regional Victoria. Depending on availability of products and transport costs, some non-metropolitan areas may experience higher price increases. The following figures are broad and aggregated for government based financial reporting purposes only.
To address the volatility in market movement VGV engaged Certified Practicing Valuers to carry out benchmark assessments within the selected metropolitan areas and the indexation factors for the benchmark areas and the corresponding postcodes have been incorporated into this set of indexation factors, using the existing format (i.e. Residential, Englobo, Commercial, Industrial and Rural). The value of the same properties will be assessed on a regular basis and VGV will continue to provide the combined indexation factors as per the current process.
Note that an indexation factor of 1.025 would denote a 2.5 per cent increase, not 1.025 per cent increase.
Financial year ending 30 June 2024
VGV estimated building cost indexation factors for Victoria for the period from 1 July 2023 to 30 June 2024.
|
|
Residential |
Commercial/Industrial |
|
Metropolitan |
1.042 |
1.031 |
|
Rural/Regional |
1.057 |
1.046 |
Calendar year ending 31 December 2023
VGV estimated building cost indexation factors for Victoria for the period from 1 January 2023 to 31 December 2023.
|
|
Residential |
Commercial/Industrial |
|
Metropolitan |
1.055 |
1.050 |
|
Rural/Regional |
1.065 |
1.060 |
Financial year ending 30 June 2023
VGV estimated building cost indexation factors for Victoria for the period from 1 July 2022 to 30 June 2023.
|
Residential |
Commercial/Industrial |
|
|
Metropolitan |
1.045 |
1.060 |
|
Rural/Regional |
1.050 |
1.070 |
Calendar year ending 31 December 2022
VGV estimated building cost indexation factors for Victoria for the period from 1 January 2022 to 31 December 2022.
|
|
Residential |
Commercial/Industrial |
|
Metropolitan |
1.042 |
1.052 |
|
Rural/Regional |
1.057 |
1.067 |
Financial year ending 30 June 2022
VGV estimated building cost indexation factors for Victoria for the period from 1 July 2021 to 30 June 2022.
|
|
Residential |
Commercial/Industrial |
|
Metropolitan |
1.090 |
1.026 |
|
Rural/Regional |
1.105 |
1.041 |
Calendar year ending 31 December 2021
VGV estimated building cost Indexation factors for Victoria for the period 1 January 2021 to 31 December 2021
|
|
Residential |
Commercial/Industrial |
|
Metropolitan |
1.040 |
1.015 |
|
Rural/Regional |
1.055 |
1.030 |
Financial year ending 30 June 2021
VGV estimated building cost indexation factors for Victoria for the period from 1 July 2020 to 30 June 2021.
|
|
Residential |
Commercial/Industrial |
|
Metropolitan |
1.054 |
1.013 |
|
Rural/Regional |
1.069 |
1.030 |
Calendar year ending 31 December 2020
VGV estimated building cost indexation factors for Victoria for the period from 1 January 2020 to 31 December 2020
|
|
Residential |
Commercial/Industrial |
|
Metropolitan |
1.020 |
1.015 |
|
Rural/Regional |
1.025 |
1.030 |
Financial year ending 30 June 2020
VGV estimated building cost indexation factors for Victoria for the period from 1 July 2019 to 30 June 2020.
|
|
Residential |
Commercial/Industrial |
|
Metropolitan |
1.020 |
1.025 |
|
Rural/Regional |
1.025 |
1.030 |
Calendar year ending 31 December 2019
VGV estimated building cost indexation factors for Victoria for the period from 1 January 2019 to 31 December 2019
|
|
Residential |
Commercial/Industrial |
|
Metropolitan |
1.025 |
1.020 |
|
Rural/Regional |
1.035 |
1.035 |
Financial year ending 30 June 2019
VGV estimated building cost indexation factors for Victoria for the period from 1 July 2018 to 30 June 2019.
|
|
Residential |
Commercial/Industrial |
|
Metropolitan |
1.02 |
1.030 |
|
Rural/Regional |
1.03 |
1.035 |
Calendar year ending 31 December 2018
VGV estimated building cost indexation factors for Victoria for the period from 1 January 2018 to 31 December 2018.
|
|
Residential |
Commercial/Industrial |
|
Metropolitan |
1.02 |
1.035 |
|
Rural/Regional |
1.03 |
1.025 |
Financial year ending 30 June 2018
VGV estimated building cost indexation factors for Victoria for the period from 1 July 2017 to 30 June 2018.
|
|
Residential |
Commercial/Industrial |
|
Metropolitan |
1.035 |
1.030 |
|
Rural/Regional |
1.035 |
1.030 |
Calendar year ending 31 December 2017
VGV estimated building cost indexation factors for Victoria for the period from 1 January 2017 to 31 December 2017.
|
|
Residential |
Commercial/Industrial |
|
Metropolitan |
1.02 |
1.025 |
|
Rural/Regional |
1.02 |
1.025 |
Financial year ending 30 June 2017
VGV estimated building cost indexation factors for Victoria for the period from 1 July 2016 to 30 June 2017.
|
|
Residential |
Commercial/Industrial |
|
Metropolitan |
1.03 |
1.04 |
|
Non-metro/Regional |
1.03 |
1.04 |
Calendar year ending 31 December 2016
VGV estimated building cost Indexation factors for Victoria for the period 1 January 2016 to 31 December 2016.
|
|
Residential |
Commercial/Industrial |
|
Metropolitan |
1.01 |
1.035 |
|
Non-metro/Regional |
1.02 |
1.04 |
Financial year ending 30 June 2016
VGV estimated building cost indexation factors for Victoria for the period from 1 July 2015 to 30 June 2016.
|
|
Residential |
Commercial/Industrial |
|
Metropolitan |
1.03 |
1.03 |
|
Non-metro/Regional |
1.01 |
1.01 |
Calendar year ending 31 December 2015
VGV estimated building cost Indexation factors for Victoria for the period 1 January 2015 to 31 December 2015.
|
|
Residential |
Commercial/Industrial |
|
Metropolitan |
1.01 |
1.03 |
|
Non-metro/Regional |
1.01 |
1.03 |
Financial year ending 30 June 2015
VGV estimated building cost Indexation factors for Victoria for the period 1 July 2014 to 30 June 2015.
|
|
Regional |
Commercial/Industrial |
|
Metropolitan |
1.00 |
1.01 |
|
Non-metro/Regional |
1.00 |
1.02 |
Calendar year ending 31 December 2014
VGV estimated building cost Indexation factors for Victoria for the period 1 January 2014 to 31 December 2014.
|
|
Regional |
Commercial/Industrial |
|
Metropolitan |
1.03 |
1.02 |
|
Non-metro/Regional |
1.04 |
1.04 |
Financial year ending 30 June 2014
VGV estimated building cost Indexation factors for Victoria for the period 1 July 2013 to 30 June 2014.
|
|
Regional |
Commercial/Industrial |
|
Metropolitan |
1.02 |
1.02 |
|
Non-metro/Regional |
1.04 |
1.04 |
Calendar year ending 31 December 2013
VGV estimated building cost Indexation factors for Victoria for the period 1 January 2013 to 31 December 2013.
|
|
Regional |
Commercial/Industrial |
|
Metropolitan |
1.02 |
1.00 |
|
Non-metro/Regional |
1.04 |
1.02 |
Financial year ending June 2013
VGV estimated building cost Indexation factors for Victoria for the period 1 July 2012 to 30 June 2013.
|
|
Residential |
Commercial/Industrial |
|
Metropolitan |
1.00 |
1.02 |
|
Non-metro/Regional |
1.03 |
1.03 |
Calendar year ending December 2012
VGV estimated building cost Indexation factors for Victoria for the period 1 January 2012 to 31 December 2012.
|
|
Regional |
Commercial/Industrial |
|
Metropolitan |
1.02 |
1.01 |
|
Non-metro/Regional |
1.03 |
1.03 |
Financial year ending June 2012
VGV estimated building cost Indexation factors for Victoria for the period 1 July 2011 to 30 June 2012.
|
|
Residential |
Commercial/Industrial |
|
Metropolitan |
1.03 |
1.02 |
|
Non-metro/Regional |
1.05 |
1.03 |
Calendar year ending December 2011
VGV estimated building cost Indexation factors for Victoria for the period 1 January 2011 to 31 December 2011.
|
|
Residential |
Commercial/Industrial |
|
Metropolitan |
1.03 |
1.02 |
|
Non-metro/Regional |
1.03 |
1.03 |
Financial year ending June 2011
VGV estimated building cost Indexation factors for Victoria for the period 1 July 2010 to 30 June 2011.
|
|
Residential |
Commercial/Industrial |
|
Metropolitan |
1.03 |
1.02 |
|
Non-metro/Regional |
1.04 |
1.04 |
Calendar year ending December 2010
VGV estimated building cost Indexation factors for Victoria for the period 1 January 2010 to 31 December 2010.
|
|
Residential |
Commercial/Industrial |
|
Metropolitan |
1.04 |
1.02 |
|
Non-metro/Regional |
1.05 |
1.04 |
Financial year ending June 2010
VGV estimated building cost Indexation factors for Victoria for the period 1 July 2009 to 30 June 2010.
|
|
Residential |
Commercial/Industrial |
|
Metropolitan |
1.03 |
1.01 |
|
Non-metro/Regional |
1.03 |
1.01 |
Calendar year ending December 2009
VGV estimated building cost Indexation factors for Victoria for the period 1 January 2009 to 31 December 2009.
|
|
Residential |
Commercial/Industrial |
|
Metropolitan |
1.02 |
1.02 |
|
Non-metro/Regional |
1.02 |
1.02 |
Financial year ending June 2009
VGV estimated building cost Indexation factors for Victoria for the period 1 July 2008 to 30 June 2009.
|
|
Residential |
Commercial/Industrial |
|
Metropolitan |
1.03 |
1.04 |
|
Non-metro/Regional |
1.02 |
1.03 |