The Victorian Building Authority issued 7869 permits in the north central region last year, up from 6767 in 2019.

The region includes Greater Bendigo as well as the Macedon Ranges, Mitchell and Mount Alexander Shires, as well as those stretching north to the Murray River.

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The region's building approval rates are even higher than the statewide 10 per cent rise in 2020, which the VBA says could be further evidence of increased demand for regional living.

Demand for pandemic support packages is also high.

More than 25,000 people had applied for the federal government's HomeBuilder scheme alone by February 26, VBA chief executive Sue Eddy said.

"We expect to see these numbers increase with the extension of the grant to 31 March. The flow on effect will be felt by many in the industry as the work commences," she said.

"The HomeBuilder scheme and Victoria's Big Housing Build will supercharge our economic recovery through the pandemic and beyond.

"The stimulus packages are a reflection of the federal and state government's confidence in the building and construction industry helping the economic recovery."

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