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June 22, 2018

QLD houses lead building approvals growth

NATIONAL detached house approvals have jumped to their strongest level in 15 years, and private houses in Queensland are leading the trend.

Australian Bureau of Statistics trend figures showed that over the three months to April, 31,562 new detached houses were approved for construction.

Housing Industry Association senior economist Shane Garrett said it was the most in any three-month period since 2003.

“The volume of approvals for new detached houses is at its strongest in 15 years,” he said.

“The performance of the detached house building market is remarkable. The volume of house approvals during the three months to April was 9.9 per cent higher than a year ago – a time when it was already elevated.”

Private sector house approvals were up highest in Queensland, rising by 1.6 per cent, followed closely by Victoria (1.5 per cent) and then New South Wales (0.6 per cent). Western Australia (0.9 per cent) and South Australia (0.4 per cent) also saw positive growth through April.

“Strong demand for new houses is being sustained by healthy rates of population growth – itself a product of robust labour markets in Australia’s largest cities.”

Queensland’s poorer showing in the apartment sector saw its overall building approvals fall by a massive -11.5 per cent though over the year to April, followed by the NT (-6.6 per cent), NSW (-5.4 per cent) and WA (-3.0 per cent).

“The apartment market remains under pressure due to the stiffer tax burden on foreign buyers in most states as well as tighter regulatory conditions. These interventions represent a real risk for the house building industry,” Mr Garrett said.

Source: Sophie Foster - The Courier Mail
https://www.news.com.au/finance/real-estate/brisbane-qld/qld-houses-lead-building-approvals-growth/news-story/4260502842e842c3e0f0285cffbad976