2013 a "solid year" for new oz homes

Photo: Rock Portrait Photography

The HIA's latest report shows that residential building approvals slipped by 2.9 per cent in December 2013. Despite the slowdown, though, the month rounded off an overall positive year for construction Down Under, with the number of building approvals jumping 15.7 per cent across the 12 months.

"This was the first year of significant expansion since 2010,” explains HIA Senior Economist Shane Garrett.

“The number of detached house approvals fell by 3.2 per cent in December with multi-unit approvals slipping by 2.5 per cent,” he adds. “Despite the monthly falls, activity in both segments of the residential building market is significantly higher than late 2012."

During December 2013, growth in total seasonally adjusted building approvals was recorded only in New South Wales, with the number rising 3.8 per cent. Declines in seasonally adjusted approvals affected South Australia (13.7 per cent), Tasmania (5.5 per cent), Victoria (5.1 per cent), Queensland (4.9 per cent) and
Western Australia (3.6 per cent).

“What concerns us most about the figures for December is that approvals fell in all states bar one,” continues Shane Garrett. “We are conscious that supply side conditions could suppress the current recovery, and December’s figures may partly reflect this difficulty. In many key markets, the planning process is moving too slowly for a nation of over 23 million."