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Approvals bounce

Approvals to build new homes continue to seesaw, with another rise evident in the latest data released this week by the Australian Bureau of Statistics (ABS).

The figures show that the number of dwellings approved rose 6.8% in August (seasonally adjusted), ending a run of four consecutive monthly declines.

The increase in the total number of approvals in August was driven by apartments and multi-unit building, which rose 13.7%. Private sector houses also rose, by 3.5%.

Across Australia, the number of approvals rose in Western Australia (up 21.0%), South Australia (11.8%), Victoria (10.5%) and Queensland (4.0%), in seasonally adjusted terms. Falls were recorded in Tasmania (down 18.9%) and New South Wales (2.3%).

Daniel Rossi, ABS Director of Construction Statistics, said that the August result indicates that approvals for detached housing remain strong despite the unwinding of stimulus measures in April and the ongoing lockdowns in New South Wales and Victoria.

“Driven by record-low interest rates, increased household savings and confidence in the housing market, private house approvals are 23.8% higher year on year and 42.0% higher than August 2019″, Rossi said.

Approvals for private sector houses rose in South Australia (16.6%), Victoria (8.1%) and New South Wales (7.0%). Western Australia (down 7.3%) and Queensland (5.2%) both fell in seasonally adjusted terms.

The value of total residential building rose 9.2% in August, comprising a 9.0% increase in new residential building, and a 10.0% rise in alterations and additions. The value of approvals for alterations and additions rose to the second-highest level recorded, behind April 2021.

About Adam Nobel

Principal
M. Bus, Grad Dip Adv, B.Int Bus, LREA

adam@hugoalexander.com.au

0417 007 001

Adam is the founder and Principal of Hugo Alexander Property Group. With a previous career in advertising, 20 years experience in property investment, and 14 years in Brisbane real estate, he knows the market inside out to ensure his clients grow their wealth faster.

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