WA Building Approvals Still Strong

WA Building Approvals Still StrongBuilding approvals continue their unbroken upward trajectory, hitting new records over the past 12 months, according to the latest data from the ABS.Despite a small drop in approvals in May in trend terms, year-to-date seasonally adjusted data sets a new high water mark for dwelling approvals.Nationally, the latest ABS Building Approvals data shows continued growth, with 218,442 new dwellings approved in seasonally adjusted terms for the 12 months to May 2015, up from 192,561 approvals for the 12-month period to May 2014.Building approvals increased 2 per cent on the April 2015 figure and rose 13 per cent year-on-year.In WA, the latest ABS Building Approvals data shows a surprising continuation in growth on record-breaking results with 31,914 new dwellings approved in seasonally adjusted terms for the 12 months to May 2015, up 5 per cent from 30,354 approvals for the 12 months to May 2014.Building approvals remained flat when compared to both the April 2015 and April 2014 figures. “WA is still reflecting strong building approvals, despite less activity in other industries such as mining. These figures will support additional new housing supply but will also provide much needed stimulus to jobs and the economy if all these approvals continue through to completions,” said the Property Council’s WA Deputy Executive Director Lino Iacomella.”Ironically this week marks the 1th anniversary of the introduction of stamp duty in New South Wales. This tax is a relic of our colonial past that has spiralled out of control, increasing by almost 800 per cent in the past two decades and it’s time it was relegated to the history books.”Australia needs to deliver new housing supply at around the 190,000 dwellings mark and it will take at least five years of building approvals at or above the 200,000 mark to meet housing formation and supply deficits that have built up over the past decade.”Housing construction is one of the few bright spots in Australia’s economy, creating jobs and economic growth. Tax and planning reform are vital if we are to maintain this strength.”