Building approvals down but recovery still happening: HIA

Residential building approvals were down 1.5% during the month of November, but recovery it still underway, according to the Housing Institute of Australia.

The number of detached house approvals in November increased by 5.7%, - the highest level since during the stimulus mid-2010 – but multi unit approvals fell 8.8%.

South Australia led the way as the strongest state, with building approvals up 23.2%, followed by New South Wales up 14.5% and Queensland up 8.3%.

“Overall, the level of building approvals is high and the latest update indicates that activity in the market continues along a rising trend,” says HIA Senior Economist Shane Garrett.

Victoria recorded the largest drop, declining 17.5% during November, followed by Tasmania down 10.4% and the Australian Capital Territory down 9.0%.

A slight increase of 0.5% was recorded in Northern Territory.

“The persistence of strong regional disparities means that the recovery cannot yet be seen as broad- based.

“Despite strong increases in New South Wales, South Australia and Queensland, a sharp decline occurred in Victoria during November and the Tasmanian market continues to be plagued by declining activity.

“It is vital that strong levels of home building continue so as to ensure that housing needs are met across all regions. This is all the more important in the context of the chronic housing underbuild over the past decade,” says Garrett.

Garrett says policy reform in the areas of residential land availability and building regulation must continue as a matter of urgency.

“Strong levels of home building will be very supportive to wider economic growth, something particularly pertinent at this time,” says Garrett.

Total dwelling approvals totaled almost 174,000 over the past year.

news@propertyobserver.com.au

Nicola Trotman

Nicola Trotman

With a penchant for the written word, Nicola has built a career doing just this – now Creative Director at thriving Melbourne-based PR agency, Greenpoint Media.

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