New home approvals have risen to an all-time high of 2.8% in March, thanks to record-low interest rates and the fast growing Australian population.
The construction of new homes has reached 19,419, which is said to be the highest monthly reading for the figures going back to 1983. The Australian also reported that multi-unit homes also stood out with 59.2%.
Detached homes are growing at just 1.6%. For St George chief economist Hans Kunnen, this reflects the desire of more Australians to live in apartments, townhouses, and semi-detached homes.
"While this category tends to be volatile, as a trend, there has been a clear shift towards more higher-density housing in this current upswing," Kunnen was quoted as saying.
“The surge in residential construction is alleviating some of the supply shortages in parts the country. The jump in construction activity within multi-unit dwellings can help to explain relatively weaker price growth of late among units in comparison to houses."
Meanwhile, Housing Industry Association senior economist Shane Garrett accredited the boost in housing starts to “exceptionally low interest rates and strong population”.
"Were it not for the performance of the residential construction industry, Australia's economy would be in a far weaker state," he said.
"New home building continues to benefit from the exceptionally low level of interest rates, as well as strong population growth over recent years in the key home buyer age group."