Property Market Information: Dwelling approvals increase nationwide

By the resi financial blog team, 04 April 2014

Dwelling approvals rise in Australia

With a growing number of people moving to Australia from overseas, there have been concerns from various real estate bodies that there won't be enough housing options for the rising population. As such, a number of organisations in the industry have been working towards ensuring government policy aids the construction of accommodation across the nation. Luckily, the latest data from the Australian Bureau of Statistics has highlighted a degree of growth in that regard. 

According to a recent release from the Housing Industry Association (HIA), housing approvals have been increasing over the last year. In fact, over the last 12 months, approval activity across Australia has increased by over 20 per cent. According to HIA Senior Economist Shane Garrett, detached homes alone have seen a 7.3 per cent increase in housing approvals over the three months to February. 

"A continuing strong volume of new supply will flow through to help alleviate dwelling prices for the existing stock. Strong residential building activity is a good thing for affordability," said Mr Garrett in an April 2 statement. 

"It is therefore important that policy settings remain favourable to stronger housing activity. It is crucial that land supply policies become more accommodative to Australia's increased housing needs." 

Over February, there was some notable detached housing growth in Western Australia, Victoria and Tasmania - rising by 4.6 per cent, 1.9 per cent and 0.9 per cent, respectively. This could highlight a great opportunity for those interested in securing investment loans and creating a property portfolio in Australia, especially ahead of the growing population boom. 

Western Australia is one of the strongest approval markets at the moment, reaching the highest monthly total number of residential approvals during February since 1983. With 2,749 approvals occurring over the month, this is also the highest monthly total ever recorded in the state.

Detached home approvals in Western Australia were strong, rising by 5.8 per cent (2,020 approvals), which is the highest number of detached approvals since April 2006. Furthermore, multi-unit approvals rose by 1.4 per cent. When compared to the same time last year, the total number of dwelling approvals over the three months to February increased by 25.1 per cent. 

HIA Acting Executive Director for Western Australia John Gelavis said these figures were a great sign, with many people previously worried about the housing supply and affordability of property in Western Australia. 

"Current market conditions provide a unique opportunity for addressing the state's chronic housing supply shortage," said Mr Gelavis in an April 2 statement. 

"With mining investment starting to come off the boil, residential construction has much to offer in terms of plugging the growth gap in Western Australia." 

Mr Gelavis encouraged policymakers to consider these facts before making any changes to the laws, especially with the expected population explosion expected to hit the state in the coming months. 

Categories: Home Loans, Property Investment