New record set for building approvals

New record set for building approvalsThe number of approvals for new dwellings has climbed once again to set a new record for the third successive month, according to the Australian Bureau of Statistics (ABS).The ABS reports that total national Building Approvals reached 205,796 in seasonally adjusted terms for the year to February 2015, up from 203,182 for the 12 months to the end of January 2015.There was a 9.8 per cent increase in dwellings approved nationally, month on month, for February 2015, seasonally adjusted. All states and territories recorded a positive upswing in trend terms, with the exception of the Australian Capital Territory, which recorded a 32 per cent drop in approvals for the year to February. But the Property Council of Australia warned that reforms are required to maintain the current strong levels of activity. “The peak level of activity we are seeing nationally in the property and construction industries is underpinning Australia’s economy, creating jobs and delivering much-needed economic growth,” said executive director – Residential Nick Proud. “But there is no cause for complacency and 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, with its flow-on benefits, to housing affordability.”According to Proud, roadblocks to sustained strong activity in the industry must be removed. He has called upon state and federal governments to make planning and tax reform priorities. “Governments at all levels must be prepared to do away with our worst taxes and stamp duty is at the top of the pile,” he said. “The sooner we wipe stamp duty off the table, the sooner we eliminate one of the greatest barriers to growth and home ownership, especially for first home buyers. “We also can’t afford to let the foreign investment in new housing supply be dismantled through excessive new fees,” he said. “Foreign investment is critical to bringing new housing supply onto the market. “In years to come, 2015 will be seen as a make or break for supply for two reasons: the first is that we actually have a pipeline to meet demand; and the second being the opportunity for governments to drive planning and tax reform that will sustain optimum supply activity for the next decade.”To see the ABS data click here