Property Market Information: Growing home approvals highlight property opportunity

By the resi financial blog team, 04 July 2014

Home approvals rise in Australia in May 2014

If you've been sitting on the fence about taking out a construction loan and building your own home, now could be the perfect time to reconsider this indecision. The latest housing approval figures released by the Australian Bureau of Statistics have highlighted the rising strength of the market, which could be encouraging for potential building projects across the nation. 

During May, housing approvals increased by 9.9 per cent - or 16,425 new projects approved . This is considerably stronger than the last three months, which were lacklustre in comparison to the explosive beginning of the year. However, Housing Industry Association Economist Geordan Murray said the recovery seen this month was encouraging for the market as a whole and gives confidence in the strengthening landscape. 

"Residential building approvals reached a peak in January this year when over 17,700 dwelling approvals were recorded. To get to the record level in January it took a situation where all the ducks
were sitting in a row - we had the five largest states all recording strong approval numbers at the same time," said Mr Murray in a July 3 statement. 

"The housing recovery, which was initially confined to New South Wales and Western Australia, appears to be gaining broader momentum. Approvals in the three months to May are markedly higher than the same time last year in all jurisdictions, ACT is the only exception." 

State-specifically, Queensland lead the growth with an impressive 45 per cent increase in dwellings during May, followed by New South Wales (18.7 per cent), Tasmania (9.8 per cent) and Western Australia (0.4 per cent). These figures are only expected to continue rising as more people begin to take advantage of the low interest rates and renewed market confidence across the region. 

Now could be the perfect time to get in contact with a financial expert to discuss the home loan options available to you and begin working towards your dream property today. 

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Categories: Home Loans, Personal Finance