Growing housing approvals across Australia highlight opportunities for investment
Home building approvals increased during May after dropping over April, with many industry experts highlighting the stabilising market. This could be a great opportunity for you to consider buying land and beginning construction on your own dream home in the near future. Recent Australian Bureau of Statistics data has illustrated this growth, with 16,425 housing approvals recorded during May - an increase of 9.9 per cent over April.
This figure brings the number of approvals closer to the record-levels seen at the end of 2013 and during January 2014, especially following the lacklustre results recorded during April. Housing Industry Association Economist Geordan Murray said the recovered results seen during May was enough to help restore confidence in the market's sustained growth.
"Residential building approvals reached a peak in January this year when over 17,700 dwelling approvals were recorded. To get to the record level in January it took a situation where all the ducks were sitting in a row - we had the five largest states all recording strong approval numbers at the same time," said Mr Murray in a July 3 statement.
"The housing recovery, which was initially confined to New South Wales and Western Australia, appears to be gaining broader momentum. Approvals in the three months to May are markedly higher than the same time last year in all jurisdictions, ACT is the only exception."
Across the nation, Queensland saw the largest growth over the last month with housing approvals increasing by 45 per cent. Following this, New South Wales (18.7 per cent), Tasmania (9.8 per cent), and Western Australia (0.4 per cent) all saw varying degrees of approval increases during the month.
These figures were supported by Wilhelm Harnisch, chief executive officer for Master Builders Australia, who said the construction industry's role in the overarching national economy was beginning to grow and fill in the space left behind by shrinking industries.
"The 9.9 per cent seasonally adjusted rise in Building Approvals for May, reflects the continuing strength of demand for units and apartments. This reflects confidence in the industry and will provide a pipeline of work for up to the next three years," said Mr Harnisch in a July 3 statement.
Now could be the perfect time to consider seeking your own residential property in the near future. As the market continues to strengthen, buying land and creating plans for your dream home could be on the horizon for you and your family.