The Australian Bureau of Statistics (ABS) and the Housing Industry Association (HIA) have released data to suggest that building approvals have risen. These figures imply that the housing construction industry in Australia, which is estimated to produce around $40 billion in revenue annually and employ approximately 68,000 people, is continuing to grow across the nation.
New building approvals rose in March to a total of 19,371 dwellings stated the ABS. This increase was 3.7% higher than in February. These approvals correspond with data released by the HIA, which indicate that many regions across the nation are experiencing substantial population growth, and as a result have a need for new housing.
Of the states, South Australia recorded the highest amount of new home approvals with an increase of 8.7%. Western Australia recorded the second highest approval rise at 7.3%; followed by New South Wales at 6.9%, Queensland at 5.7% and Victoria at 3.7%.
The only state that recorded a decrease in building approvals was Tasmania. Approvals for this state fell by 18.7%.
Dwellings within the private sector, excluding houses, saw the largest increase in numbers with a rise of 6.7%. Private sector home approvals grew by 2.6%.
It is also important to note that while new dwelling approvals have increased across most of Australia that these numbers are still lower than 2015 figures, which were 6.5% higher when compared to March data. Dwellings in the private sector saw the biggest fall in approval rates over the 12-months to March 2016, with a drop of 11.5%. Private sector housing approvals decreased by 0.2%.
The HIAs latest building data suggests that there are a number of areas across Australia that are experiencing population growth, which is resulting in more new dwelling approvals. In fact, it is estimated that during the 2014-15 financial year that the top 20 building hotspots across Australia recorded an overall growth rate of 127% with some $216 million in building approvals. In the top 20 are a number of regions, several of these are as follows:
- Cranbourne East in Victoria: This area came second in the top 20 with a population growth of 32% and around $328 million in new dwelling approvals.
- The Cobbitty-Leppington region in New South Wales: With a population growth of 26.8%, this region had over $360 million in new dwelling approvals.
- Harrison in the Australian Capital Territory: Recorded a population growth of 22.8% and approximately $101 in new dwelling approvals.
- Canberras south-west: Doubling in population, this area recorded around $216 million in new dwelling approvals.
In fact, the HIA stated that there is a total of 600 building hotspots across Australia where population growth is greater than the national average, and the value of the yearly residential building in these regions exceeds $100 million. While these hotspots have occurred across all Australian states and territories, South Australia and Tasmania failed to make it into the top 20 as ranked by annual population growth.
Victoria however, dominated the rankings with six hotspots across the state. This state is followed by Western Australia with five top 20 hotspots, New South Wales with four, Queensland and the Australian Capital Territory with two, and the Northern Territory with one.
Regions that are expected to perform well over the 2015-16 financial year are Queenslands Pimpama with an estimated 147% increase in new dwelling approvals. The Waterloo-Beaconsfield region in New South Wales with an anticipated 54% increase in new building approvals. Along with the Truganina area in Victoria with a predicted 50% increase in new dwelling approvals.
Cranbourne-east in Victoria is projected to have an increase of 48% in new dwelling approvals during the 2015-16 financial year. Also, the Cobbity-Leppington region in New South Wales is expected to have an increase of 44% in new dwelling approvals.
Tags: Home Buying