SA contributes to record-breaking building approvals

Building Approvals in South Australia are increasing over the 12 month period, according to the latest data released today from the ABS.

Nationally, the latest ABS Building Approvals data shows a significant improvement on last month’s record-breaking results with 205,796 new dwellings approved in seasonally adjusted terms for the 12 months to February 2015, up from 203,182 in January 2015.

South Australian Building Approvals recorded a six per cent increase in trend terms over the previous annualised 12 month period. A total of 11,2 homes were approved to the end of February, which should flow through to increased jobs and economic activity.

“State building approvals have shot up by six per cent compared with the previous year’s result,” said the Property Council’s South Australian Executive Director, Daniel Gannon.

While the annualised numbers show an increase, the month to month story sees a marginal drop. In fact, 924 dwellings were approved in February in trend terms which was a two per cent decrease on the previous month.

“This peak level of activity nationally in the property and construction industries is underpinning Australia’s economy, creating jobs and delivering much needed growth and strength in the face of lower performance by other industries.

“It is also helping to address the fundamental issue of new housing supply and the flow-on benefits to housing affordability from increased supply.

“But this can only continue if key roadblocks to sustained strong activity in the industry are removed.

“Maintaining the status quo is not an option if we are to keep construction levels strong and bring on the required volume of new housing stock.

“That means planning and tax reform must be a priority – we need better planning systems in place urgently, as well as tax reform at the state and federal level.

“In South Australia, the State Government bravely kicked off the discussion about state taxes and the Federal Government is leading the debate about overhauling an archaic tax system.

“Governments at all levels must be prepared to do away with our worst taxes and stamp duty is at the top of the pile.

“Stamp duty – the most volatile and inefficient of taxes – must go, as this acts as a handbrake on economic activity, jobs and growth.”