New home approvals hit 10-year high in australia

Tasmania, Australia, saw the biggest jump in housing approvals Photo: CrafterM

Total dwelling approvals increased 6.8 per cent in January (seasonally adjusted), which continues the strong performance seen in the last six months of 2013.

“Over the past twelve months, approvals have totalled over 182,000, the highest twelve month total since 2004," comments HIA Senior Economist, Shane Garrett. "In the three months to January, approvals were at an annualised level of over 200,000."

The figures indicate a healthy pipline of residential construction, which the HIA expects to translate into a "boost in real activity on the ground floor in the coming months".

Total detached house approvals increased by 8.6 per cent in January, with multi-unit dwelling approvals rising by 4.7 per cent.

“Today’s figures show that the housing activity may finally be reaching the kind of levels demanded according to market fundamentals,” adds Shane Garrett. “Over the past decade, Australia has outshone almost all developed economies in terms of economic growth and population increases, yet structural barriers largely impeded an adequate response in housing supply."

South Australia and Tasmania led the way with growth of 10.5 per cent each, followed by Victoria (10.4 per cent), Western Australia (5.6 per cent), New South Wales (5.4 per cent) and Queensland (1.2 per cent). The Northern Territory and the ACT, though, saw approvals fall 28.3 per cent and 2.3 per cent respectively.

“We are now seeing a real opportunity to begin plugging the housing deficit that has opened up over the last decade,” concludes Garrett.