Australian Bureau of Statistics (ABS) building approvals remained at an elevated, albeit slightly lower level in December 2014, after reaching their highest-ever monthly level during November. Source: Timberbiz
Figures released this week by the Housing Industry Association show that the total number of new homes approved in December 2014 was 3.3% below the record reached in November, although this level was still 8.8% higher than in December 2013.
“The ‘multi-unit’ sector continues to be the key driver of building approval results,” said HIA Economist, Geordan Murray.
“The sharp spike in multi-unit approvals in Victoria in November was reversed in December (down by 44.0%). There were some partial offsets with multi-unit approvals growing in New South Wales (up by 52.0%), Queensland (up by 3.1%) and South Australia (up by 130.6% from a low base).
“In aggregate, the number of multi-unit approvals across the country fell by 7.9% in December, although the number approved was 12.7% higher than the corresponding month a year earlier.
“Detached house approval numbers were very consistent on a month by month basis throughout 2014. Across the nation, approvals for new detached dwellings increased by 1.1% in the month which represents a continuation of the trend level of around 9500 approvals per month that has persisted throughout 2014,” said Geordan.
“Looking at the performance of Australia’s major industries in 2014, residential building was amongst the top performers. The low and stable interest rate environment has provided support for demand from home buyers during the year and this situation looks to remain the case throughout 2015.”
During December 2014, seasonally-adjusted new dwelling approvals increased most strongly in New South Wales (+26.9%), followed by South Australia (+26.8%). Increases also occurred in Queensland (+1.7%) and in Western Australia (+1.1%). Declines in new home approvals were recorded in Victoria (-26.3%) and in Tasmania (-8.3%). In trend terms, new dwelling approvals fell in the Australian Capital Territory (-1.9%) and in the Northern Territory (-2.5%).
