New high for residential housing approvals during September

By the resi financial blog team, 25 November 2013

New high for residential housing approvals

Whether you're a first home buyer or interested in expanding your investment property portfolio, news of increasing housing approval rates could be of interest to you and your real estate goals.

The Housing Industry Association (HIA) has highlighted the nation's growth in this area, with residential housing approvals rising by 14.4 per cent over September, with a total of 16,318 approvals passed during the month.

Senior Economist at the HIA, Shane Garrett, said this figure was the highest seen in Australia since March 2010, highlighting an increasing confidence in both the construction and the real estate markets.

Much of this growth was spurred on by multi-unit construction, where approvals rose by 31.8 per cent compared to August. Furthermore, detached home approvals increased by 1.9 per cent, indicating a shift towards more compact accommodation options.

New South Wales and Victoria experienced the largest increases in approvals, growing by 25.2 and 18 per cent, respectively.

This could be based on the many projects being undertaken in capital cities across the nation - especially Melbourne and Sydney - where impending population booms are encouraging a rapid increase of accommodation and infrastructure to help support the growth.

"The main message from today’s figures is that the RBA’s interest rate cuts over the past two years are helping to support activity on the ground," said Mr Garrett in an October 31 statement.

"It is important that residential construction activity continues to grow in order to make up for the shortfall in building over the last decade. Residential land being made available more speedily would be one outcome supportive of this objective."

As interest rates are at an attractive level, now could be a great time to begin building an investment property or to purchase an off-the-plan home. Investigate the home loan options available to you, and begin your journey towards homeownership.

Categories: Home Loans, Property Investment