Building permit activity in Victoria improved to $2.3 billion in August, a jump of 21.8 per cent from the same month last year.

Deputy Building Commissioner Peter Donald said the commission’s pulse building permit activity data for August 2011, the highest August on record, was credited to a significant rise in residential and commercial building activity with a number of very high value building permits, including one permit valued at $130 million in Melbourne City for a Residential/Retail development on Spencer Street.

The metropolitan region saw an increase of 27 per cent to $1.8 billion in the value of building permit activity in August when compared with the same month last year, and rural Victoria an increase of 5 per cent to $432 million.

Compared to August 2010, the value of residential building permits rose 155 per cent to $480 million. Commercial jumped 119 per cent to $349 million, retail increased 121 per cent to $141 million and industrial rose 109 per cent to $39 millio.

On a regional basis, Inner Melbourne rose 54.6 per cent to $1.1 billion, North Central increased 13 per cent to $84 million, North West jumped 30 per cent to $73 million, while South West rose 28 per cent to $432 million.

Donald said: “The strong August 2011 activity has also contributed to a strong calendar year to date, which is 5 per cent ahead on the levels from last year”.