Skip to content

Detached new home approvals reach highs in certain Australian states

The latest figures from the Housing Industry Association, the voice of Australia’s residential building industry, show that detached homes are driving the sector forward.

Total seasonally adjusted building approvals increased by 23% in South Australia, by 5.4%  in Western Australia, by 3.8% in Queensland and by 0.3% in Victoria.

Seasonally adjusted building approvals fell by 10.5% in the Northern Territory, by 7.7% in New South Wales, by 3.1% in ACT and were down by 5.3% in Tasmania.

Overall a 4.2% increase in approvals for detached homes was the main driver of the growth although multi unit approvals also increased by 1.6%. Much of the increase in the detached sector was in South Australia and New South Wales.

‘We have seen indicators of consumer sentiment improve over recent months and we may well be seeing an early sign that this is flowing through to activity on the ground. After two consecutive months where approval numbers slipped back it is pleasing to see a material improvement in February,’ said HIA economist, Geordan Murray.

‘Interestingly, there were 1,601 detached homes approved the New South Wales in February making it one of only three months since 2005 when detached dwelling approvals have broken through the 1,600 mark. The other two occurred during the financial crisis when federal stimulus policies were in full effect,’ he explained.

‘Approvals in South Australia lifted 23% from the lows of a month earlier. The strong result took the number of approvals to the highest monthly tally in over 18 months. Hopefully this is a sign that the state may be emerging from the cyclical low,’ he added.

Related