The number of building approvals for February 2017 is now at a six month high, according to newly released data from the Australian Bureau of Statistics (ABS).
In seasonally-adjusted terms, the total new dwelling approvals increased by 8.3% during February. This included a 5.7% rise in detached house approvals and an 11% jump in ‘multi-unit’ approvals.
“Over the past 12 months, new dwelling approvals have totalled 229,091 across Australia. This will ensure that a substantial pipeline of work will keep the housing industry busy for much of 2017,” said
Shane Garrett, senior economist at the Housing Industry Association (HIA).
Despite the sharp increase in dwelling approvals in February, the overall building approvals profile is consistent with the expectation that new home construction will slow down over the next few years, he added.
“The multi-unit side of the market will see the greater share of the reduction in new home building activity. Already, approvals are down by over 20% in quarterly terms since August of last year.”
Breaking down the numbers by state, new home approvals increased in two states during February: Queensland by 33.7% and NSW by 19.6%.
Reductions in approvals occurred in Tasmania (-14.7%), Victoria (-8.8%), South Australia (-2.5%) and Western Australia (-5.5%).
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