Building approvals set new record

Building approvals set new recordData from the Australian Bureau of Statistics shows building approvals in January continued to rise for the eighth consecutive month, increasing 1.3 per cent.In seasonally adjusted terms, the estimate rose 7.9 per cent to 19,282 dwellings, the Australian Bureau of Statistics (ABS) said.The value of total buildings approved also saw an increase, rising 2.5 per cent in January in trend terms – a lift that has continued for seven months. The ABS said the value of residential building rose 2.9 per cent and non-residential building increased 1.4 per cent in trend terms.The Property Council of Australia’s Executive Director – Residential, Nick Proud, said the total national approvals climbed to 203,182 in seasonally adjusted terms, breaking the record set in December 2014 when approvals passed the 200,000 mark for the first time. “We are witnessing record activity in building approvals, and this points to 2015 being a year of high activity in residential construction,” Proud said.”This translates into more jobs and increased economic activity.”Read more here. Victoria was by far the strongest performer in terms of building approvals, recording a 14.7 per cent increase in trend terms on the previous 12 months.”Victoria continues to drive strong numbers of building approvals and play a leading role in the economy,” said Jennifer Cunich, the Property Council executive director Victoria.”Some 5107 dwellings were approved in January in trend terms, which was a marginal improvement on the previous month.”However, 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.”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,” she said.Read more here. The Property Council’s ACT executive director, Catherine Carter, said, “The ACT is bucking the national trend but in all the wrong ways. The ACT results show a drop of 25.9 per cent in building approvals in trend terms on equivalent 2014 levels.””However, there is potential to share in national infrastructure and planning reform in 2015 which will help increase residential development activity.”Read more here.In Queensland the Property Council’s analysis of the data pointed to strong building approvals but executive director Chris Mountford expressed concern that actual activity was less certain.”The record number of building approvals in the state aren’t translating into actual home builds, and the gulf between the two is cause for concern,” said Mountford. Read more here.Meanwhile, the Property Council noted that Tasmania had experienced “a huge jump in building approvals” (up 26 per cent on the previous 12-month period) but executive director Brian Wightman said “there is room for further improvement that will see Tasmania win its share in the jobs, growth and economic activity experienced by other states”. Read more here.