This article is from the Australian Property Journal archive
BUILDING approvals jumped by a record 43.5% in February, rebounding from the weak January figures that were impacted by the holiday season and Omicron wave.
It was underpinned by a surge in the volatile apartment and townhouse sector where approvals surged by 78.3% over the month to 7,183 and detached houses by 16.5% to 10,240, according to the Australian Bureau of Statistics.
The total number of dwellings approved – 18,675 – was the highest number since June last year.
Daniel Rossi, ABS director of construction said the rise in February was driven by a large increase in apartment approvals in New South Wales and Victoria, which lifted 49% and 91% respectively.
South Australia saw a 36% gain, Tasmania over 12% and Western Australia 8%, while Queensland fell 14.6% after being the only state to record an increase in January.
In annual terms, February’s national approvals figure is 7.8% below the HomeBuilder-fuelled figures of a year earlier.
Detached houses are down by 27.4% while apartments and townhouse approvals are 25.5% higher.
A report from the National Housing and Finance and Investment Corporation estimates Australia’s housing supply shortfall will be 163,400 dwellings by 2032.
The value of total building approved rose 67.5% month-on-month in February. The value of non-residential building jumped by 132% after a 37.2% fall in January, marking its second-highest level recorded, behind March 2021. This was driven by a large number of public developments, with 14 projects valued over $30 million approved.
The value of total residential building rose 38.7%, comprised of a 47.7% increase in the value of new residential building, and a 6.4% fall in alterations and additions.
