Detached house approvals surge down under

Tasmania, Australia, where approvals climbed Photo: Sarah Brabazon

Approvals rose by 4.7 per cent in seasonally-adjusted terms in April 2015 to a total of 10,264, according to the Housing Industry Association - the highest monthly figure since February 2010.

Total new dwelling approvals fell by 4.4 per cent to 18,715 in seasonally-adjusted terms. The reduction was driven by the multi-unit segment, with a 13.6 per cent reduction occurring during the month. A total of 214,331 approvals were recorded in the year to April, though, the highest 12 monthly total on record.

"Strengthening activity in detached house building is crucial to broadening the base of the new home building recovery which has been largely contained to the multi-unit market to date," comments HIA Senior Economist, Shane Garrett.

"It is important that policy settings allow the expansion in detached house building to deliver on its full economic potential."

Approvals only increased in Tasmania (29.8 per cent) during April, with approvals declining in all the other states, led by New South Wales (14.6 per cent), Queensland (14.2 per cent) and South Australia (10.3 per cent).