According to data from the Housing Industry Association (HIA), approval for new dwellings are at a 15-month high, the highest level since August 2016.
“Growth was driven by multi-units which saw approvals expand by 28.7 per cent during the month. The number of new detached house approvals actually declined by 2.8 per cent in November but the number of approvals remains consistent with what we saw throughout 2017,” said Shane Garrett, HIA senior economist.
“Even though multi-unit approvals can vary hugely from month to month, the result for November is still remarkably robust given that building approval volumes have been trending down for some time.”
Mr Garrett also said the increase of new dwelling approvals in Melbourne over the month of November made up for the majority of approvals, making Victoria the fastest growing state in regards to population, in which HIA data indicated a rise of 37.9 per cent.
Following Victoria was Tasmania at a rise of 10.6 per cent and then Western Australia at 3.9 per cent. The other states recorded falls, the largest being the ACT at 21.8 per cent, then the Northern Territory at 3.2 per cent, South Australia at 3 per cent, Queensland at 2.4 per cent and then New South Wales at 2.3 per cent.
“Newly built dwellings are a vital component of the rental market – and properly functioning rental markets are crucial in accommodating employment growth and economic development,” Mr Garrett said.
“It is very important that taxation settings relating to investors continue to support the provision of adequate rental supply.”