Monthly construction approvals reached the highest level on record in November last year, suggesting the popularity of construction loans may also be increasing. Figures released by the Australian Bureau of Statistics (ABS) reveal a 0.2 per cent month-on-month rise in the number of projects given the go ahead, although the Housing Industry Association (HIA) suggests the results may be even more impressive.
The group revealed that approvals for new properties totalled 18,245 over the course of the month. This figure is almost 3 per cent above the previous monthly record that was set back in August 1994.
Overall approvals were 10.1 per cent higher than the previous year, although the greatest success was seen in the multi-unit segment. This witnessed an annual increase of 18 per cent, while detached homes experienced a 3.6 per cent rise.
“Residential construction was the economy’s good news story during 2014, and today’s figures indicate that we can look forward to another positive year for the industry,” commented HIA Senior Economist Shane Garrett.
“The fact that approvals hit an all-time high during November augers very well for the pipeline of residential construction work in 2015.”
Mr Garrett explained that new home building is supporting the economy at a time when it is needed most, which is why policy settings need to be put in place to make sure it can continue to thrive. This should involve removing taxation burdens and improving the supply of land needed by those with construction loans.
The HIA revealed that Victoria witnessed the strongest number of dwelling approvals over the course of November, with a rise of 19.7 per cent. This was followed by an increase of 8.2 per cent in Tasmania, 5.7 per cent in Queensland and 1.2 per cent in Western Australia.
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