Building approvals bounce back in October but first home buyers at decade low

Building approvals have bounced back in October and pushed the total number of residential dwellings approved nationally to 233,180 over the year on a seasonal basis.

The turnaround in October is welcome news, with the strong results delivering important gains for Australia’s economy.

The 19,652 building approvals recorded in October are heading back towards peak territory of 20,000 recorded earlier this year.

However, the number of first home buyers has fallen to the lowest level in over a decade according to the latest ABS Housing Finance data released today, further underscoring the need for tax reform. 

First homebuyers now account for only 15.1 per cent of all housing finance, the lowest level since June 2004.

It is clear that the larger states are still driving national activity, with benefits flowing through to the broader economy. Implementing national efficiencies for housing supply to support completions across all states will maximise the economic return from this heightened activity.

As we head into 2016 there is a need to better leverage the strongest residential construction activity ever recorded and consider new ways to support supply to meet the housing needs of all Australians.