Building approvals in 2015 continue on record breaking track

Building approvals in 2015 continue on record breaking trackABS Building Approvals released today break the 2014 record, with total national approvals climbing to 203,182 in seasonally adjusted terms, up from 201,025 in December last year.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.The Property Council of Australia noted that outside of the ACT and NT, there was a positive upswing across the states in trend terms. “New South Wales and Victoria continue to be the stand out performers for new approvals, however there has been across the board improvements in all states, ” said Executive Director – Residential, Nicholas Proud. “We are witnessing record activity in terms of approvals, and this points to 2015 being a year of high activity in residential construction.”This translates into more jobs and increased economic activity. “Most states are seeing an improved pipeline of potential activity with Tasmania and South Australia strengthening.”However, there is an 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 process.”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: Fiona Benson -0407 294 620