Building approvals dip in November but recovery remains underway

Residential building approvals eased back during November 2013 but the recovery in activity remains strong, said the Housing Industry Association, the voice of Australia’s residential building industry.

“Total residential approvals dropped back by 1.5 per cent during November compared with the previous month,” said HIA Senior Economist Shane Garrett.

“Overall, the level of building approvals is high and the latest update indicates that activity in the market continues along a rising trend.

“During November, the number of detached house approvals increased by 5.7 per cent with multi-unit approvals falling by 8.8 per cent,” Shane Garrett noted. “Detached house approvals are at their highest level since during the stimulus in mid-2010. Total dwelling approvals totalled almost 174,000 over the past twelve months, a level of building which is much more consistent with Australia’s longer term housing needs,” continued Shane Garrett.

“The persistence of strong regional disparities means that the recovery cannot yet be seen as broad based,” cautioned Shane Garrett. “Despite strong increases in New South Wales, South Australia and Queensland, a sharp decline occurred in Victoria during November and the Tasmanian market continues to be plagued by declining activity.

“It is vital that strong levels of home building continue so as to ensure that housing needs are met across all regions. This is all the more important in the context of the chronic housing underbuild over the past decade.

“Policy reform in the areas of residential land availability and building regulation must continue as a matter of urgency. Strong levels of home building will be very supportive to wider economic growth, something particularly pertinent at this time,” concluded Shane Garrett.

Posted by Charles Tarbey on 20/01/2014 at 12:00 AM | Categories:

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