Victorian apartment approvals at a record high
The most recent monthly housing approvals released from the Australian Bureau of Statistics show Victoria continues to cater for future housing stock with a combined 5,009 new approvals during November 2014. Of those approximately 2,350 were for high density living with apartments and townhouses the major contributors.
The figures and associated graph were highlighted on January 8th by Urban Taskforce Australia, a peak industry body charged with representing property development interests across Australia although with a strong Sydney focus.
While housing approvals across Australia are reaching record levels NSW approvals have dropped. Victoria is leading the country with 5,009 home approvals in November compared to 3,958 for NSW which is a significantly larger state.
The state election in NSW is only a few months away and clearly the attitudes to growth and the impact on housing supply and therefore the affordability of housing will be an important election issue. We can’t let NSW slide off its Number One status in Australia so we must support growth to remain the Premier State.Chris Johnson, Urban Taskforce Australia
Sydney parochialism aside, monthly high density approvals over the best part of 30 years can be seen in the below graph. Most noticeable is the Victorian sector lagging well behind the other states for many years, although in recent years this trend has reversed, in line with the increased penchant for apartment living principally throughout inner Melbourne.
A number of articles on the matter have been published via various media outlets in recent days along with the almost obligatory associated potential for oversupply of apartments in the Melbourne markets; the same spectre which has been present since 2011, yet for the most has been staved off.
Special kudos is reserved though for SBS online which reported the direct correlation between heightened Victorian approvals and an increase in apartment oversupply; quite a supposition given these additional approvals are nothing more than paper approvals and do not add to the physical stock of available dwellings.
See the Australian Bureau of Statistics latest figures on the topic.