Building approvals rose for August in most states, reflecting a strong demand for housing despite the end of stimulus measures in March.
Residential dwelling approvals increased by 33.7% in the three months to August, according to the Australia Bureau of Statistics.
The current sales rate also went up compared to 2018’s and 2019’s three months to August. Data from the Housing Industry Association’s (HIA) revealed that sales are 4.5% higher than 2018 and 15.4% higher than 2019.
“The value of renovations approved also reached its second highest level on record. Households are spending money that typically would have been spent on overseas holidays, on improving their living spaces,” said Angela Lilicrap, economist at HIA.
As more people seek medium-density housing, multi-unit approvals were 39.7% higher than the three months to July 2020. These included semi-detached units, townhouses and apartments.
In particular, Queensland and Western Australia saw the highest demand for apartments to accommodate their growing population.
In seasonally adjusted terms, total residential building approvals increased in the three months to August compared to the same time last year in Western Australia at 62.4%, South Australia at 51.5%, New South Wales at 38.7%, Queensland at 37.6%, Victoria at 26.5% and Tasmania at 10.7%.
Such a demand will continue to create employment opportunities into the second half of 2022.
However, building approvals declined in the North Territory at 38.1% and the Australian Capital Territory at 33.1% in original terms.
