New home building activity shows signs of recovery

Date:

Share post:


According to the Australian Bureau of Statistics’ (ABS) November 2024 data, total dwelling approvals fell by 3.6% compared to the previous month but rose 7.2% over the three months to November.

“Detached house approvals in the three months to November 2024 increased by a modest 0.7% on the previous three-month period and climbed 7.1% compared to the same period in the previous year, said HIA Senior Economist Matt King.

“There are signs of life again in building approvals, pointing to a nascent recovery in new home building.”

The multi-unit sector also showed improvement, with approvals rising 20.1% over the same period and 2.6% higher than the corresponding period in 2023.

However, Mr King acknowledged challenges remain: “Despite some improvement, multi-unit approvals remain subdued, trending at decade-low levels amid challenges like cost escalations, skilled labour shortages, and credit constraints for businesses.”

Western Australia led the nation in growth for both detached house and multi-unit approvals, with increases of 40.8% and 207.5%, respectively, in the three months to November 2024 compared to the same period in 2023.

South Australia, Queensland, and the Northern Territory also recorded strong growth in detached house approvals, while Victoria and New South Wales saw modest gains in multi-unit approvals.

Despite these encouraging trends, Mr King stressed the importance of government policy in sustaining and amplifying the recovery.

“Policy makers must double down on reducing industry red tape, excessive taxation, and improving land availability and skilled labour supply,” he said.

A national recovery is in sight, but Mr King noted that the size of the upswing will depend heavily on Federal and State Government housing policies.



Source link

Nicole Lambert
Nicole Lambert
Nicole Lamber is a news writer for LinkDaddy News. She writes about arts, entertainment, lifestyle, and home news. Nicole has been a journalist for years and loves to write about what's going on in the world.

Recent posts

Related articles

The luxury St Andrews golf property with iconic views and a $14m price tag

The Swilcan Townhouse, part of an exclusive four-home development called Fairways, will provide unparalleled views of the...

Regional property markets show strength as capital cities decline

According to CoreLogic’s Housing Chart Pack for February, regional property values grew by 1 per cent over...

LJ Hooker’s brand reset to draw in new agents

As one of Australia’s most iconic real estate brand approaches its centenary in 2028, the company has...

Sean Hanneberry appointed CEO of Professionals Group

Professionals Group Australia has appointed Sean Hanneberry as its new Chief Executive Officer, marking a move towards...

How bad styling mistakes can make or break a sale

Kellie has seen it all, including homes that sit on the market for months simply because of...

The Super Bowl Effect: how the biggest sporting event impacts business, real estate and the economy

But standing in the middle of this spectacle now, I see it through a completely different lens,...

Experienced agent follows in father’s footsteps to open RWC MC

With over 15 years of experience working in Melbourne’s commercial property market, Ted Dwyer brings a wealth...

Kris Jenner lists iconic ‘Keeping Up With the Kardashians’ mansion

The Mediterranean-style mansion, which was heavily featured in Keeping Up With the Kardashians, has been a staple...