subscribe to our newsletter
Home approvals continue to rise

Home approvals continue to rise

The ongoing surge in new homebuilding provides further evidence that the housing boom may be drawing to a close.

The Australian Bureau of Statistics reported that 18,768 dwelling units were approved in February. That marked a 14.3 per cent jump on the previous year.

The February result was the second highest in history, not far off the record 19,282 approvals that occurred in January.

Private sector house approvals fell 1.0 per cent in February. However, there was a 36.2 per cent jump in approvals for all other private sector dwellings, which are principally units.

Housing Industry Association senior economist Shane Garrett said housing approvals remain at exceptionally high levels, and that there is a solid pipeline of activity for the months ahead.

“A steady pipeline of new homes represents the most effective solution to alleviating housing affordability pressures,” he said.

The rise in supply has coincided with a decline in property price growth.

Australia’s eight capital cities grew by an average of 3.1 per cent during the 12 months to 31 March 2015, according to CoreLogic RP Data.

Price growth remains at double-digit levels in Sydney, but it has slowed, noticeably in Melbourne.

Adelaide and Brisbane are growing at little more than the inflation rate, while Perth, Canberra, Darwin and Hobart's growth are under the inflation rate.

Home approvals continue to rise
mortgagebusiness logo

Latest News

The prudential regulator has outlined why there is often so much divergence between borrowers and lenders over a four-letter word. It’s no...

Personal insolvencies in Australia rose by 5.6 per cent in the 2017–18 financial year, according to new data from the government. ...

Financial sector reviews have not changed the way Australian banks evaluate performance, the Finance Sector Union has told the royal commiss...

Promoted Stories

podcast

LATEST PODCAST: Wayne Byres on mortgages, trusted brands and broker remuneration

Do you expect access to credit to get harder this year?