Building approvals increased by 43.5% in February following a poor result in January according to Australian Bureau of Statistics’ monthly building approvals data for detached houses and multi-units covering all states and territories. Source: Timberbiz
“As expected, detached building approvals increased by 15.6% and multi-units by 104.8%,” HIA economist Tom Devitt.
Mr Devitt said that approvals had been held back in January by the Omicron outbreak and a higher than usual uptake of holiday leave. The absence of Council workers, private certifiers and building business staff weighed on the ability to process approvals.
“February’s data illustrates that the approvals for detached homes remain above pre-pandemic levels,” Mr Devitt said.
He said that approvals of multi-units in February represented the second strongest month since June 2018. Affordability issues, land constraints and a return to the city was seeing increased demand for units, townhouses and apartments.
“It is also an encouraging sign that apartment construction will return prior to the return of overseas migration,” Mr Devitt said.
“The value of renovations approved also remains elevated. The last 12 months has seen the value of renovations approved increase by 44.4% on the year before the pandemic.
“This elevated level housing demand will keep builders busy this year and well into next year, limited by the availability of land, labour and materials,” he said.
In seasonally adjusted terms, total residential building approvals decreased in the last three months compared to the previous quarter in Western Australia (-20.8%), Queensland (-9.4 %), South Australia (-3.6%), and New South Wales (-0.1 %), while increasing in Victoria (+1.0%). In original terms, approvals increased in the Northern Territory (+18.7%) and the Australian Capital Territory (+8.1%) and decreased in Tasmania (-3.7%).
