Housing approvals reached their highest level in 20 years

The federal government's HomeBuilder program continues to boost construction activity in Australia, with single-detached home approvals peaking 20 years, according to the latest data from the Australian Bureau of Statistics (ABS).

In the three months ending in October, approvals of isolated dwellings rose 18.6%, with all states and territories reporting gains except Australian Capital Territory. On an annual basis, approvals for single-family homes over the three-month period were 23.2% higher.

Housing Industry Association economist Angela Lillicrap said the detached segment is likely to continue to report gains in approvals over the next several months, especially due to the expansion of the HomeBuilder program.

"HomeBuilder has been the catalyst in improving consumer confidence in the housing market. The strength of building approvals is due to several factors, including low interest rates and changes in consumer preferences, ”she said.

Western Australia reported the greatest improvement over the period, with isolated housing approvals across the state increasing 62.8% from a year ago. Queensland and the Northern Territory also saw a sharp increase in approvals of isolated dwellings.

However, the multi-unit segment has remained silent, with approvals still down 12.5% ??from last year, even with the small gain posted during the month. Lillicrap said there was a discrepancy between the conditions facing single-family home builders and apartment builders.

"Slower population growth, especially in Sydney and Melbourne, and an increased preference for single-family homes, will likely lead to a restriction in demand for apartments by 2021," he said. she declared.

Overall, the total number of approved dwellings increased 3.8% on a monthly basis. This growth was driven by strong increases in New South Wales (32.1%) and Western Australia (29.7%).

"Continued strong demand for single-family housing follows the easing of COVID-19 restrictions in most states and territories. Historically low interest rates and a range of federal and state incentives also support the housing sector, "said Daniel Rossi, director of construction statistics at ABS.

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