Home Market Insights New dwelling approvals increase in September

New dwelling approvals increase in September

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New dwelling approvals have bucked the trend of a rapidly cooling market by increasing 1.5% in September.

There was a 0.8% increase in new detached house approvals and a 2.3% expansion in approvals for multi-units nationwide.

“Over the wider horizon of the whole quarter, today’s figures are also quite favourable,” said Housing Industry Association (HIA) senior economist Shane Garrett.

“During the September 2017 quarter overall, total approvals for new dwellings were up by 5.1 percent. This was driven by an expansion of 7.6 percent in multi-unit projects,” he added.

Garrett believes that the figures indicate home building is being supported by the strong pace of job creation in several key markets.

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In September, dwelling approvals increased most in Western Australia (+27.1 %), followed by Tasmania (+16.5 %) and New South Wales (+10.7 %) according to the HIA.

Approvals also grew in the Australian Capital Territory (+8.0 %), the Northern Territory (+6.9 %) and South Australia (+6.6 %) but fell in Victoria (-2.0 %) and Queensland (-17.0%).

Garrett predicts that new home building activity will trend downwards over the next couple of years and probably “bottom out” in 2019.

Source: HIA

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