The number of new dwelling approvals rose for the third month in a row, but this momentum will soon peter out, according to data from the Housing Industry Association (HIA).
Shane Garrett, senior economist at HIA, said that the number of dwelling approvals rose by 0.9 per cent, which was a consequence of growth in Victoria.
“This growth was underpinned by a 24.3 per cent increase in approvals in Victoria and 6.1 per cent growth in Queensland, which outstripped the declines in all other states,” Mr Garrett said.
According to the HIA, the growth can be attributed to new detached house approvals, which rose by 1.9 per cent over October. Meanwhile, multi-unit approvals fell by 0.2 per cent.
“The remarkable growth in Victoria is the standout feature of the Australian housing market at the moment,” said Mr Garrett.
“Strong employment growth in Victoria is attracting interstate and international migration and the rising population is continuing to drive demand for more housing stock. The record supply of new apartments in the state has not been able to fully satisfy demand.”
Looking at the year ahead, Mr Garrett predicted reductions at 8.2 per, and again in 2019 with 10 per cent.
“This will mean that new home building activity will ease to levels that remain high by historic standards,” Mr Garrett said.
Across the other states, new dwelling approvals were on the decline; the largest of which was recorded in Western Australia at 17.8 per cent. Following this was 13.1 per cent in Tasmania, 8.4 per cent in South Australia, 6.8 per cent in NSW and 5.3 per cent in the ACT.