Detached home approvals in Australia reach five year high

Detached house approvals in Australia hit a five year high during April, according to the latest report from the Housing Industry Association, the voice of Australia’s residential building industry.

During April, detached house approvals rose by 4.7% in seasonally adjusted terms to reach 10,264, the highest monthly total for detached house approvals since February 2010.

However, HIA senior economist Shane Garrett pointed out that a weaker month for the multi-unit segment of the market actually drove total new dwelling approvals lower during April.

In the month the total number of new dwelling approvals fell by 4.4% to 18,715 in seasonally adjusted terms. The reduction was driven by the multi-unit segment, with a 13.6% fall.

The data also shows that the detached house market saw a total of 214,331 approvals recorded in the year to April, the highest 12 monthly total on record.

‘Strengthening activity in detached house building is crucial to broadening the base of the new home building recovery which has been largely contained to the multi-unit market to date,’ said Garrett.

‘It is important that policy settings allow the expansion in detached house building to deliver on its full economic potential,’ he added.

A breakdown of the figures show that seasonally adjusted new dwelling approvals only increased in Tasmania with growth of 29.8%. Approvals declined in all the other states, with the largest monthly reductions occurring in New South Wales with a fall of 14.6%, Queensland down 14.2% and South Australia down 10.3%.

New dwelling approvals also declined in Western Australia by 3% and in Victoria by 2.2% while in trend terms, new dwelling approvals increased in the ACT during April by 8.4% and fell by 6.2% in the Northern Territory.

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Source: Property News Spain