Invest
Private housing approvals reach record high
Private sector housing approvals have reached a record high, with multi-unit apartments dropping in popularity amid the COVID pandemic, official figures have revealed.
Private housing approvals reach record high
Private sector housing approvals have reached a record high, with multi-unit apartments dropping in popularity amid the COVID pandemic, official figures have revealed.
Stats released by the Australian Bureau of Statistics (ABS) showed that private sector housing approvals have risen for the sixth consecutive month in December to reach a new record high.
The total number of dwellings approved rose 10.9 per cent in December, with all states clocking increases in seasonally adjusted terms.
Tasmania led the way, rising 66.5 per cent, followed by Queensland and South Australia, which also recorded double-digit growth.
The value of total buildings approved increased 4.9 per cent in December, in seasonally adjusted terms. The value of non-residential buildings drove the increase, rising by as much as 10.1 per cent, having dropped 27.7 per cent in November.
ABS director of construction statistics Daniel Rossi said approvals for private houses rose 15.8 per cent in December, while dwellings excluding houses expanded 2.3 per cent.
“Private house approvals were strong across the country, with Victoria, South Australia and Western Australia hitting record highs in seasonally adjusted terms. Federal and state housing stimulus measures, along with record-low interest rates have contributed to strong demand for detached dwellings,” Mr Rossi explained.
“Despite the uncertainty experienced by developers and households during 2020, the total number of dwellings approved in the calendar year was 4.8 per cent higher than in 2019,” he said.
Apartments to lag
Despite showing strong growth in the final quarter, apartment growth has been tipped to fall in 2021.
Multi-unit approvals increased by 14.4 per cent in the December quarter, compared with the preceding quarter, but dropped 12.6 per cent year-on-year.
Commenting on the data, HIA economist Angela Lillicrap said the relatively strong level of approvals is not an indication of the volume of commencements in 2021, as the planning and approval process likely kicked off prior to COVID.
“There is a divergence in the conditions facing detached builders versus apartment builders.
“Not only does the apartment market face headwinds from a lack of population growth and a preference for detached houses, yesterday’s regional migration data shows a shift away from metropolitan Sydney and Melbourne.
“The apartment market is also likely to be constrained until overseas migration returns,” Ms Lillicrap concluded.
About the author
About the author
Property
Poor wage growth could impede home price growth
With wages growth at record-low levels, a property expert has warned that continuing low and flat wages could impede home price growth. ...Read more
Property
Negotiating a lower interest rate on your property loan
The banks are customer hungry, meaning they’re willing to offer increased discounts to new customers and apply these discounts to existing customer loans, a mortgage broker has said. ...Read more
Property
How to determine the real value of a property
With various factors affecting market value and pricing, can one truly predict what buyers will pay for properties? ...Read more
Property
House prices tipped to soar 20% in 2 years: Westpac
House prices in Sydney are tipped to grow by 20 per cent over the next two years, and by 18 per cent in Melbourne, as a leading economist predicts strong economic growth following the rollout of the C...Read more
Property
5 tips to unearth the next property hotspots
A property expert has bullishly claimed that property hotspots are a “complete myth” that almost guarantees buyers will pay top dollar, and has instead urged buyers to seek out the “warm spots...Read more
Property
Top 10 inland rural towns to invest in
While it’s become apparent that regional housing markets have stolen the spotlight, having outpaced their capital city counterparts in 2020, new research has shown that inland rural towns have also ...Read more
Property
Where to buy under $300k
A positively geared property with high capital growth potential does not necessarily need to carry an astronomical price tag, an expert has said, with new market entrants able to land a home for under...Read more
Property
‘Great Australian dream’ of owning a home lives on amid COVID
Most Australian investors and home buyers were largely undeterred by the events of 2020, remaining eager to push through with their investment plans, a new survey has found. ...Read more
Property
Poor wage growth could impede home price growth
With wages growth at record-low levels, a property expert has warned that continuing low and flat wages could impede home price growth. ...Read more
Property
Negotiating a lower interest rate on your property loan
The banks are customer hungry, meaning they’re willing to offer increased discounts to new customers and apply these discounts to existing customer loans, a mortgage broker has said. ...Read more
Property
How to determine the real value of a property
With various factors affecting market value and pricing, can one truly predict what buyers will pay for properties? ...Read more
Property
House prices tipped to soar 20% in 2 years: Westpac
House prices in Sydney are tipped to grow by 20 per cent over the next two years, and by 18 per cent in Melbourne, as a leading economist predicts strong economic growth following the rollout of the C...Read more
Property
5 tips to unearth the next property hotspots
A property expert has bullishly claimed that property hotspots are a “complete myth” that almost guarantees buyers will pay top dollar, and has instead urged buyers to seek out the “warm spots...Read more
Property
Top 10 inland rural towns to invest in
While it’s become apparent that regional housing markets have stolen the spotlight, having outpaced their capital city counterparts in 2020, new research has shown that inland rural towns have also ...Read more
Property
Where to buy under $300k
A positively geared property with high capital growth potential does not necessarily need to carry an astronomical price tag, an expert has said, with new market entrants able to land a home for under...Read more
Property
‘Great Australian dream’ of owning a home lives on amid COVID
Most Australian investors and home buyers were largely undeterred by the events of 2020, remaining eager to push through with their investment plans, a new survey has found. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
