Powered by MOMENTUM MEDIA
realestatebusiness logo

Subscribe to our newsletter

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.

Advertisement
Advertisement

“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

Latest News

Discover some of the top news stories impacting the mortgages space in this weekly wrap-up. ...

The central bank should have raised the official cash rate earlier than May given rising inflation, according to economist Stephen Koukoul...

In the face of ever-increasing competition from fintechs in the buy now, pay later space, NAB has nabbed its share by launching its first BN...

VIEW ALL

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!

What is the maximum proportion of income borrowers should use to service a mortgage?

Website Notifications

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