Building approvals ease slightly over October but mixed picture: HIA

Noting that residential building approvals eased over October 2013, the Housing Industry Association's chief economist Harley Dale said that it's actually a healthy result.

“After a modest decline of 1.8% in October, total residential building approvals are still at their second highest level since March 2010," said Dale.

However, New South Wales seasonally adjusted building approvals dropped by a significant 33.5%.

“There were wide variances in the October approvals results, including strong growth in Victoria and Queensland helping to offset a dip in New South Wales,” he said.

The fastest growth in approvals when looking beyond October is occurring for New South Wales, Victoria and Queensland. Growth in 'other dwelling' approvals, at 43%, is outpacing detached housing.

“The upward momentum to building approvals is impressive and augers well for new home building activity heading into a new year,” he said.

In October, growth in seasonally adjusted building approvals was noted to be strongest in Victoria, at 23.4%, followed by Tasmania at 19.7%. The Northern Territory saw approvals increased by 13.4%, while Queensland saw a 10.5% increase.

Modesr growth was seen in South Australia, recording 1.2%.

Western Australia recorded a 6% fall, while the ACT saw a 4.7% decline.