Building approvals dip down under

Building approvals dipped Down Under in November 2013, according to the Housing Industry Association, but the construction sector remains on the path to recovery.

“Total residential approvals dropped back by 1.5 per cent during November compared with the previous month,” comments HIA Senior Economist Shane Garrett.

“Overall, the level of building approvals is high and the latest update indicates that activity in the market continues along a rising trend."

“During November, the number of detached house approvals increased by 5.7 per cent with multi-unit approvals falling by 8.8 per cent,” Shane Garrett adds. “Detached house approvals are at their highest level since during the stimulus in mid-2010. Total dwelling approvals totalled almost 174,000 over the
past twelve months, a level of building which is much more consistent with Australia’s longer term housing needs."

He cautioned, though, that "the persistence of strong regional disparities means that the recovery cannot yet be seen as broadbased". Indeed, while New South Wales enjoyed strong growth, Victoria Tasmania's markets saw sharp declines.