Building approvals in australia at three-year high

Photo credit: 8LettersUK

Data from the Housing Industry Association shows that residential building approvals in September 2013 rose 14.4 per cent from the previous month to 16,138, the highest monthly figure since March 2013.

The figures have been welcomed by the HIA, with approvals now growing at a year-on-year rate of 180,000 for the last three months.

Indeed, total approvals have surged by a total of 19.3 per cent in the third quarter of 2013 compared to the same three months in 2012.

Growth has largely been fuelled by the multi-unit sector, which saw approvals leap 31.8 per cent month-on-month. The detached sector, on the hand, saw approvals only rise by 1.9 per cent.

“This demonstrates that the recovery is not yet as broad-based as we would like,” commented HIA Senior Economist Shane Garrett.

 “The main message from today’s figures is that the RBA’s interest rate cuts over the past two years are helping to support activity on the ground. However, it is worth remembering that the growth in approvals is dominated by multi-units rather than houses. It would be a welcome development to see greater momentum emerge for detached housing.”

He added: “It is important that residential construction activity continues to grow in order to make up for the shortfall in building over the last decade. Residential land being made available more speedily would be one outcome supportive of this objective.”