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Record 200k building approvals overshadowed by haves and have nots

  • February 04, 2015

Record 200k building approvals overshadowed by haves and have notsA seasonally adjusted 201,025 ABS Building Approvals were recorded across 2014 breaking the 200,000 annual mark for the first time and delivering ,000 more approvals than in recent years. These extraordinary numbers are an historic result for the residential development sector nationally and will boost jobs and economic activity, however at a state level the flow through of these benefits is acutely varied. “Record numbers of building approvals have been achieved by Victoria, New South Wales and Queensland supported by domestic and foreign investment, but results are mixed for the other states,” said the Property Council of Australia’s Executive Director Residential, Nick Proud. “Nationally, despite the 3.4 per cent drop to 17,753 dwellings approved in December, overall a record 200,000 homes were approved for the full year ending December 2014. This continues to shore up the pipeline for national residential activity and promote confidence in the industry. “To show the current strength of the December 2014 ABS Building Approvals result, the same 12 month period ending December 2012 saw only 153,000 homes approved – ,000 fewer residential approvals than today’s result. “Record building approval levels was acknowledged only yesterday by the Prime Minister for its impact on jobs and as one of the strong aspects of the economy, but continued strong growth, and a better distribution of growth across all states and territories, requires further reform across all levels of government. “Despite the record breaking national numbers, today’s figures also show that unfortunately some states are simply treading water. “States such as South Australia, Tasmania and the Australian Capital Territory are not benefitting from foreign investment, however there is potential for infrastructure delivery and planning reform in F2016 which will assist these regions to share in the strong activity. “Right now we have a golden opportunity to achieve national gains for jobs, community prosperity and housing affordability when the residential development industry is at its best. “The Property Council will be pushing a strong reform agenda with all levels of government to improve the efficiency and effectiveness of the tax system, as well as infrastructure and development assessment delivery systems in 2015. “We are firmly focused on working with states to achieve planning reform which integrates the infrastructure needs of growing cities and drives investment across all states and territories.”