Renewed housing strength following record dwelling approvals
Dwelling approvals have been improving across the nation, with January posting decade-high figures for the number of properties sought and given the green light. As a result, this could lead to increased housing supply and positive conditions for anyone wishing to purchase residential properties in Australia.
In a recent release by the Housing Industry Association (HIA), it was revealed that January's housing approval figures rose by 6.8 per cent. This highlights the continuing strength of the property market that began during the second half of 2013, with investors and home-upgraders alike beginning to fill in supply issues across the nation.
More specifically, January saw total detached home approvals increase by 8.6 per cent, while multi unit dwelling approvals rose by 4.7 per cent. With total dwelling approvals reaching 17,514, this made January 2014 the highest result for a single month in over 11 years.
Senior Economist for the HIA Shane Garrett said approvals rose over 182,000 over the past year, becoming the highest 12 month total since 2004. Furthermore, in the three months to January, approvals were sitting at an annualised level of over 200,000.
"This indicates that the pipeline of residential building work is looking particularly healthy. These approvals should translate into a boost in real activity on the ground over the coming months," said Mr Garrett in a March 4 statement.
With this type of recovery occurring, it seems that the housing industry is beginning to catch up to the demands of the market. Structural barriers have always been in the way of allowing the industry to blossom, impeding the ability to provide a decent response to property demand. However, the opportunity to rectify this is occurring now as more people begin to have their own home building projects approved.
Across the states, January was a a great month for most. South Australia and Tasmania were equal with the largest increase in approvals, both experiencing a 10.5 per cent rise in the number of dwellings approved.
Following this, Victoria (10.4 per cent), Western Australia (5.6 per cent), New South Wales (5.4 per cent) and Queensland (1.2 per cent) all posted positive results for the month.
"We urge policymakers right across Australia to ensure that planning systems, land supply and infrastructure delivery are streamlined further in order to ensure the long awaited supply response can continue," said Mr Garrett. The need for policy supporting this growth is important for the continued development of residential property in Australia.