The number of building approvals issued in November 2021 increased by 3.6% compared with the previous month, with both detached and multi-unit approvals increasing for the month. Source: Timberbiz
Approvals for detached homes in November 2021 were the strongest since February 2000, excluding the HomeBuilder surge in 2020/21. Detached approvals remain elevated in all jurisdictions.
“This boom in detached home building is set to be sustained well into 2023,” HIA chief economist Tim Reardon said.
“Multi-unit approvals have been recovering from the adverse impact of COVID-19 and continued to increase in November with a 7.5% increase in the month,” he said.
“This leaves multi-unit approvals for the three months to November also 7.5% higher than for the same period the previous year.
“This is an encouraging sign that apartment construction will return prior to the return of overseas migration.”
“The value of renovations approved also remained elevated. The last 12 months had seen the value of renovations approved increase by 35.7% on the previous year.
“All indications continue to demonstrate that demand for building services and materials will remain elevated in all regions throughout 2022 and well into 2023,” Mr Reardon said.
In seasonally adjusted terms, total residential building approvals increased in November 2021 compared with the previous month in most states. Tasmania led the pack (+40.8%), Queensland (+20.0%), followed by South Australia (+14.5%) and Victoria (+8.9%). New South Wales had the largest decline (-18.4%) reflecting volatility in the multi-unit approvals, Western Australia also declined marginally (-1.1%). In original terms, building approvals increased in the Australian Capital Territory (+18.9%) and the Northern Territory (86.4%).
