Bounce back in national housing approvals
Recent concerns over the strength of the national property market seem to have been quelled, as the latest construction figures point to renewed strength throughout the industry.
The Australian Bureau of Statistics (ABS) shows some parts of the country fared better than others. Compared to the previous month, the Northern Territory, South Australia, Victoria and Tasmania all witnessed increases in trend terms.
HIA predictions suggest new home building may have reached its peak in 2014-15.
There are high hopes this will lead to more homes for sale being made available in these regions and various other parts of the country.
Construction strength supports the economy
Latest ABS figures will not only offer some certainty to the construction sector, but also the economy as a whole. The Property Council of Australia’s executive director of residential Nick Proud emphasised just how crucial the industry is to the wider market.
“It is critically important that we maintain a solid forward pipeline of new housing construction to consolidate the gains new supply has made towards improvements in housing affordability,” he commented.
The Housing Industry Association (HIA) agreed, revealing that the seasonally adjusted number of new dwelling approvals registered the strongest monthly result since July’s all-time high.
However, the HIA stressed that taxation issues now need to be addressed if the burden on the sector is to be kept to a minimum. This will make sure there is a sufficient amount of new homes coming into the market.
HIA predictions suggest new home building may have reached its peak in 2014-15, which is why policies now need to be introduced to ensure momentum can be maintained over the coming financial year.
Some areas are thriving
Demand for new-build real estate in Melbourne could be especially buoyant, as the Property Council revealed that Victoria led the charge in October. For the first time, the state reached 70,000 approvals in a 12-month period.
This wasn’t the only region to have posted strong results. HIA analysis shows South Australia witnessed a seasonally adjusted 23.4 per cent rise in housing approvals, followed by a 22 per cent increase in New South Wales.
Mr Proud indicated that it is the largest states currently driving activity, meaning the challenge now is to make sure smaller areas can follow suit. One aspect that needs a renewed focus is real estate in Brisbane, as Property Council analysis shows fewer homes were approved in October.