This article is from the Australian Property Journal archive
APARTMENT and townhouse approvals plummeted in April, but the heightened demand for detached housing continued to shine through in official data as the segment hit a record high.
Total approvals fell 8.6% month-on-month in April following an 18.9% increase in March, according to the Australian Bureau of Statistics. The April fall was driven by a 28.6% fall in private sector dwellings excluding houses, but detached home approvals increased 4.6%.
“While there was a fall in overall approvals, the April result highlights the continued strong demand for detached housing, with private sector house approvals reaching a new record high in April, up 4.6%,” Daniel Rossi, director of construction statistics at the ABS said.
Since the introduction of the federal government’s HomeBuilder initiative in June, private house approvals have risen 84%. South Australia hit a new record high in April, and New South Wales reached its highest level since December 1988.
The end of the HomeBuilder grant on 14th April did not have a material impact on the April data, as the approvals process typically occurs after the submission of the HomeBuilder application.
HomeBuilder is expected to support some $30 billion of residential construction after than 120,000 grant applications were made – four times more than expected – although the construction boom is expected to slow.
Total approval numbers in March rose in New South Wales (12.3%), Western Australia (5.5), and South Australia (3.4%), while they fell in Victoria (by 23.5%), Queensland (14.3%) and Tasmania (2.5%).
Private sector house approvals rose in New South Wales (30.1%), Queensland (8.3%), and South Australia (2.7%), while falls were recorded in Victoria (of 5.0%) and Western Australia (by 3.8%).
The value of total building approved decreased 22.6%. Total residential building fell 7.5 by value, comprising a 7.6% fall in new residential building and a 3.8% fall in residential alterations and additions.
A decreased in public sector approvals saw the value of non-residential building fall 43.2% from the record levels reached in March.
