Powered by MOMENTUM MEDIA
subscribe to our newsletter

Home building to remain historically high

Westpac is confident that home building approvals will remain at historically high levels despite predictions of a retracement in the coming months.

The latest figures reveal that new home building approvals reached their highest-ever monthly level in November last year.

According to the Australian Bureau of Statistics, 18,245 new homes were approved during November, almost 3.0 per cent higher than the previous record, which was set in August 1994.

Total approvals in November rose by 7.5 per cent on the previous month, and were 10.1 per cent higher compared to 12 months ago.

Westpac senior economist Elliot Clarke said that overall, the November figures point to a strengthening of the residential construction work pipeline for 2015 and support aggregate activity in the major capital cities.

Advertisement
Advertisement

“It is likely that we will see a partial retracement of the recent approvals surge in coming months, but that will still leave approvals at a historically high level,” he said.

As is typically the case, the November figures were driven by unit approvals. The number of private unit approvals increased by 16.7 per cent in November following a 31.6 per cent surge in October.

Annual growth for this series is more modest, but still strong, at 19.1 per cent, Mr Clarke said.

“As for October, the strength in the private units component was driven by strong growth in Victoria: a 19.7 per cent monthly gain for total approvals (which followed on from a 26.6 per cent gain in October) seeing annual growth surge to 45.3 per cent,” he said.

Unit approvals in Victoria are now up 91.1 per cent.

PROMOTED CONTENT


Elsewhere conditions are softer.

NSW saw a 1.4 per cent decline in total approvals in November, down 4.4 per cent for the year.

In Queensland, while total approvals rose 5.7 per cent in the month, approvals remain 8.7 per cent lower than a year ago.

Across in WA, approvals rose 1.2 per cent in November and are 7.0 per cent higher than a year ago.

“It is worth highlighting that, beneath these modest headline outcomes, is rapid growth in unit approvals, 239 per cent for the year in WA and 45 per cent for the year in Queensland,” Mr Clarke said.

“Growth in NSW has slowed considerably, but it is still robust at 24 per cent over the year,” he said.

Home building to remain historically high
mortgagebusiness

Latest News

As the new chief and chair are handed the keys in 2022, they will be tasked with continuing the bank’s push for growth in the coming years...

The ACCC has confirmed that three of the big four banks are now accredited data recipients under the Consumer Data Right. ...

The major bank is piloting a zero-interest rate digital credit card, with plans to release it later this year, following similar moves by it...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

Do you think APRA's bank buffer changes will see more borrowers use non-banks?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.