Approval numbers for dwellings rose across Australia during February
Buying land and building residential property is a great way to establish yourself in the real estate market in Australia. Regardless of whether you're hoping to use it as an investment property or your own home, now could be the perfect time to begin seriously considering taking out a home loan and building real estate somewhere in Australia.
The latest data from the Australian Bureau of Statistics has highlighted the growing number of housing approvals occurring across the nation. With the impending population boom heading towards the country pushing for more housing supply and the growing confidence of people across the nation to secure mortgages, now could be a great time to consider this option.
Over the last 12 months, approval activity has grown by over 20 per cent across the country, with Housing Industry Association (HIA) Senior Economist Shane Garrett stating a strong volume of new supply will help to provide accommodation while alleviating prices for existing property.
"Strong residential building activity is a good thing for affordability. It is therefore important that policy settings remain favourable to stronger housing activity," said Mr Garrett in an April 2 statement.
During February 2014, for example, there was notable growth in Western Australia (4.6 per cent), Victoria (1.9 per cent) and Tasmania (0.9 per cent). In fact, Western Australia has risen to the highest monthly total of approvals since 1983, which could highlight a great opportunity for investment in the region.
Total seasonally adjusted approvals for new dwellings in the state grew by 4.6 per cent during February up to 2,749 - the highest monthly total ever recorded in Western Australia.
HIA Acting Executive Director for Western Australia John Gelavis said these figures have come as great news for the area, with people beginning to worry about the housing supply of the region in the face of large population growth.
"With mining investment starting to come off the boil, residential construction has much to offer in terms of plugging the growth gap in Western Australia," said Mr Gelavis in an April 2 statement.
"Current market conditions provide a unique opportunity for addressing the state's chronic housing supply shortage."
With detached home approvals growing by 5.8 per cent in the state, this was the highest monthly figure for homes since April 2006. Multi-unit approvals also rose by 1.4 per cent during February. When compared to the same time last year, total dwelling approvals for the three months leading to February saw total dwelling approvals increase by 25.1 per cent.