Australian construction enjoys healthy growth

Photo credit: 8LettersUK

The number of approvals for residential property climbed for the second consecutive quarter in August 2014, according to the Housing Industry Association.

The total number of approvals increased by 3 per cent to 16,810 in the month of
August 2014, which the HIA has hailed as "a very healthy start to the 2014/15 fiscal year". Detached housing approvals edged downward by 1.4 per cent, although with around 9,400 approvals, it remains consistent with the level observed so far this year.

"The number of approvals in August remained below the peak achieved in January this year. Nevertheless, August was a particularly strong month for residential building approvals," says HIA Economist Geordan Murray.

The increase in building approvals nationally during August was driven largely by the 15.5 per cent increase in Victoria (seasonally adjusted terms). Approvals also increased in New South Wales by 2.9 per cent, Queensland by 1.4 per cent, South Australia by 11.3 per cent. Western Australia recorded a decline in approvals of 16.2 per cent after the blockbuster month in July, while Tasmania held steady (down by 0.6 per cent).

"In the twelve months to August approvals reached 197,571 – a record high in any twelve month period. This result demonstrates that accommodative monetary policy settings are facilitating a sustained recovery in new home building."