Powered by MOMENTUM MEDIA
subscribe to our newsletter

Building approvals in recovery mode

New home building began recovering in February following a decline in January, according to new data from the Australian Bureau of Statistics.

The figures showed that total new dwelling approvals saw an increase of 3.1 per cent in February 2016, after dropping 7.5 per cent in January. Multi-unit approvals saw the biggest growth – up 7.7 per cent – while detached house approvals declined by 1.0 per cent.

Commenting on the data, Housing Industry Association senior economist Shane Garrett said the monthly lift in approvals is welcome, but it seems increasingly likely that approvals peaked late last year and that the volume of new home building activity is set to ease as 2016 progresses.

“Our latest forecasts indicate that the about 200,000 new dwelling starts will take place during 2016 – a reduction of 9.2 per cent from last year,” he said.

“This would still represent a very high level of output by historical standards; however, the risk remains that new home building output will fall below the levels required to meet long-term demand.

Advertisement
Advertisement

“The onus remains on policy makers to tackle this problem and confront issues like planning delays, land supply shortfalls and heavily inefficient taxes like conveyance stamp duty.”

To compare the states, Tasmania saw the biggest growth in new approvals during February, with 24.5 per cent.

NSW was next best with an increase of 14.3 per cent, followed by Queensland (9.5 per cent).

Conversely, Victoria experienced the biggest decline in approvals – down 12.8 per cent, while South Australia’s approvals dropped 10.9 per cent and Western Australia’s fell 7.6 per cent.

[Related: Falling home sales point to property downturn]

PROMOTED CONTENT


 

Building approvals in recovery mode
mortgagebusiness

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

Latest News

A high rate of loan repayments through the pandemic has somewhat slowed the growth of Heritage Bank’s book, despite a surge in approvals. ...

Small and medium-sized enterprises were the most commonly targeted victims of cyber attacks in the last financial year, according to new rep...

An overwhelming majority of Pulse Credit Union members have supported the proposed deal with Teachers Mutual Bank Ltd, with the two companie...

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!

How long do you think it should take to discharge a mortgage?

Website Notifications

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