There was a turnaround in building approvals in October, pushing the total number of residential dwellings approved nationally to 233,180 over the year on a seasonal basis, according to the Property Council of Australia.
The resurgence in October is welcome news, said Nick Proud, executive director residential for Property Council. The numbers are a good indicator of the national economy’s gains.
“Property is Australia’s largest industry, contributing more to GDP than any other and strong residential construction activity helps underpin the 1.1 million jobs the industry creates,” Proud said.
Proud remarked that it is important to approve even more new housing construction to strengthen the gains new supply has made in terms of improving housing affordability for all.
He noted that the 19,652 building approvals posted in October are close to the peak of 20,000 recorded earlier this year.
Among the states, Victoria was the leader in month-on-month increases at 3.9%. The state has hit 70,000 approvals over the last 12 months through October for the first time.
South Australia enjoyed that biggest jump, up 23.4% for October. Approvals in the state are over the 10-year average, and the increase means potential job creation for South Australia.
Not all states enjoyed an increase; Queensland posted the largest drop in dwellings approved, with 28.7% fewer homes approved in October compared to its figure the previous month.
“It is clear that the larger states are still driving national activity, with benefits flowing through to the broader economy. Implementing national efficiencies for housing supply to support completions across all states will maximise the economic return from this heightened activity,” Proud noted.
Proud said that next year the industry needs to find better ways to both control strong residential construction activity to ensure consistency, and to adequately supply consumers with the properties they need.
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