Detached building approvals are continuing to sustain healthy levels, above those seen pre-COVID according to the HIA. The Australian Bureau of Statistics yesterday released its monthly building approvals data for detached and multi-unit data covering all states and territories. Source: Timberbiz
“Approvals for detached homes in the three months to October 2021 increased by 5.6% compared with the same period in the previous year,” HIA Economist Tom Devitt said.
“Ongoing strong sales and approvals numbers continue to confirm that detached home building will remain elevated throughout 2022. A change in consumer preference is now the main force driving this demand,” he said.
“The value of renovations approved also remains elevated. The last 12 months has seen the value of renovations approved increase by 37.3% on the previous year.’’
Multi-unit approvals numbers had been solid in recent months but fell away sharply in October with a 36.1% decline.
Multi-unit approvals in New South Wales and Victoria fell by 48.6% and 15.8% respectively, in the month of October.
Mr Devitt said the sharp decline in multi-unit approvals in October could be an implication of the lockdowns in Sydney and Melbourne earlier in the year.
“Despite this, multi-unit starts in the last three months were 24.0% higher than at the same time the previous year when COVID adversely impacted the multi-unit market,” he said.
“The multi-units market depends heavily on overseas migrants, tourists and students. The re-opening of international borders is crucial to the prospects of this sector.”
In seasonally adjusted terms, total residential building approvals increased in the three months to October 2021 compared with the same time in 2020 in most states. New South Wales led the pack (+28.1% ), followed by South Australia (+20.7%), Queensland (+8.3%), and Victoria (+6.7%). Declines occurred in Western Australia (-5.7%) and Tasmania (-19.3%). In original terms, building approvals increased in the Australian Capital Territory (+38.5%) and declined in the Northern Territory (-50.8%).
