Building approval data released by the ABS has pleased the Housing Industry Association (HIA) and is tipped to occur in Australia’s population and economic hotspots, which indicates there is still a need for supply to meet demand.
During March, building approvals rose by 2.6 per cent, 14.5 per cent higher than they were last year, according to new ABS data.
“The areas with the strongest population growth are helping to sustain new home building approvals,” said Mr Shane Garrett, senior economist for the HIA.
“Population growth is particularly strong in Victoria and Queensland because of their ability to generate lots of new jobs at the moment. These two states have accounted for the lion’s share of growth in building approvals over the past year.”
The detached house and apartments have seen benefits from the improving prospects for new home building, Mr Garret said.
Detached houses in particular have not seen approvals at this high a level since over three year ago during April 2015.
“The upshot of today’s figures is that new home building activity will remain elevated over the near term,” Mr Garrett said.
“Strong population growth and a strong economy go hand in hand.”
The ACT saw the largest increase in building approvals compared to last year at a rise of 23.5 per cent over the March quarter for 2018. This was followed by Victoria at 20 per cent and Queensland at 15.2 per cent, then Tasmania at 9 per cent and South Australia at 8.1 per cent.
Meanwhile, the Northern Territory saw the largest decline of building approvals at 23.4 per cent, followed by Western Australia at 18.2 per cent and NSW at 2.7 per cent.