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Home approvals continue to rise

08 April 2015 Staff Reporter

The continuing surge in new home building adds to evidence that the housing boom may be drawing to a close.

The Australian Bureau of Statistics has reported that 18,768 dwelling units were approved in February, marking a 14.3 per cent jump on the previous year.

The February result was the second-highest achieved, not far off the record 19,282 approvals in January.

Private-sector house approvals fell 1.0 per cent in February, but there was a 36.2 per cent jump in approvals for all other private sector dwellings, which are mainly units.

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Housing Industry Association senior economist Shane Garrett said housing approvals remained at exceptionally high levels and there was a solid pipeline of activity for the months ahead.

“A steady pipeline of new homes represents the most effective solution to alleviating housing affordability pressures,” he said.

The rise in supply has coincided with a decline in property price growth.

Australia’s eight capital cities grew by an average of 3.1 per cent for the 12 months to 31 March 2015, according to CoreLogic RP Data.

Price growth remains at double-digit levels in Sydney, but it has slowed noticeably in Melbourne.

Adelaide and Brisbane are growing at little more than the inflation rate, while Perth, Canberra, Darwin and Hobart's growth are under the inflation rate.

Home approvals continue to rise
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