Tassie records a jump in building approvals

Tassie records a jump in building approvalsTasmania has seen a huge jump in building approvals up 26 per cent on the previous 12 month period according to the latest ABS statistics released today. However there is room for further improvement that will see Tasmania win its share in the jobs, growth and economic activity experienced by other states.Nationally, the latest ABS data confirms the continued strength of the property and construction industries, which looks set to continue in 2015 with a seasonally adjusted 19,282 dwellings approved in January taking total national annualised approvals to a record-breaking 203,182.”It’s great news for building approvals nationally, and a huge jump for Tasmania, but we are still some way off getting the full benefit from optimum levels of activity,” said Brian Wightman, Property Council of Australia Executive Director – Tasmania.”228 dwellings were approved in January to support a total of 2,3 homes in trend terms for the full year ending January 2015. This 26 per cent improvement on the previous year has seen the pipeline for state residential activity increase over the past couple of years, but falls short compared to 2010 and 2011 levels.”The record national numbers have been supported by domestic and foreign investment but Tasmania is still missing out.”Multi Dwelling activity is also lower compared to other states and this is an area for improvement.”There is a potential emerging issue around building approvals not converting to actual starts due to costs, delays and obstructive policy settings.”That’s why reform is so vital, to ensure that the high approval numbers are translating into construction of the new homes needed to meet demand and keep a lid on prices.”And it’s yet another reason why we can’t afford to be discouraging foreign investment, which is so critical to turning approvals into actual builds.”The proposed new stamp duty on foreign investment will have an impact on the timely conversion of building approvals to starts.”Residential development is a powerhouse of the economy and we need to see some evidence-based policy.”What we have here is a golden opportunity for national gains to be achieved in terms of jobs, strong communities and housing affordability when the residential development industry is at its best.” Media contact: Brian Wightman, Executive Director Tasmania: 0429 073 773