Over the last 12 months approvals have totalled over 182,000, the highest 12 month total since 2004 and in the three months to January approvals were at an annualised level of over 200,000.
The figures shows that the strong performance recorded during the second half of 2013 is continuing into 2014, according to Shane Garrett, HIA senior economist.
‘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,’ he explained.
During January, total detached house approvals increased by 8.6% with multi unit dwelling approvals rising by 4.7%. In seasonally adjusted terms, total dwelling approvals during January numbered 17,514, the highest result for a single month in over 11 years.
‘These figures show that the housing activity may finally be reaching the kind of levels demanded according to market fundamentals. Over the past decade, Australia has outshone almost all developed economies in terms of economic growth and population increases, yet structural barriers largely impeded an adequate response in housing supply,’ Garrett pointed out.
‘We are now seeing a real opportunity to begin plugging the housing deficit that has opened up over the last decade and 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,’ he added.
The strong result is consistent with the stronger forecasts outlined in the HIA’s latest series of outlook reports. This year the HIA expects about 165,600 commencements, followed by 168,000 starts in 2015.
There is, however, considerable variation from state to state. In New South Wales the number of building approvals increased by 5.4%, in Victoria they jumped 10.4%, and South Australia also saw a surge at 10.5%. Queensland saw a rise of 1.2% and Western Australia 5.6%.
But in the Northern Territory there was a huge drop, with new approvals falling by 28.3% while the ACT also saw a fall, down 2.3%.
