This article is from the Australian Property Journal archive
QUEENSLAND has recorded its worst building approval figures for September in ten years, according to the latest data from the Australian Bureau of Statistics.
The ABS figures showed Victoria was the best performer, whilst New South Wales experience its second worst level of private sector new home approvals since 1986 – with just 2,500 homes approved.
“Queensland saw its worst September in ten years with only 2,300 homes approved and Western Australia saw its second worst September since 2001 – with just 1,600 homes approved,” The Urban Taskforce’s chief executive Aaron Gadiel said.
“In contrast Victoria experienced its best September ever, with 4,900 new private sector home approvals. Victoria continues to escape the housing supply problems that dog other key states and NSW remains a stand out poor performer,” he added.
Meanwhile private sector home approvals fell across Australia by 6.9% in September. Led by Victoria with 10.7% falls following four straight monthly increases and QLD declined by 3.2% and Western Australia fell by 8.4%.
Only NSW buck the trend, with a 2.9% increase; however this follows its 14.3% decline in the previous month.
Gadiel said that higher density home approvals account for the lion’s share of the fall, with a 15.7% drop in seasonally adjusted private sector approvals across Australia, while private sector houses saw a comparatively modest drop of just 2.3%.
“New private sector house approvals have been trending negatively now for nine months across Australia, while higher density home approvals have been trending down for the last four months.
“While the sustained decline in house approvals is evident across all key states, higher density approvals have been trending down in Western Australia for seven months, six months in Queensland, three months in NSW and for just one month in Victoria.
“Nationwide public housing approvals of 500 dwellings are near to their pre-stimulus level (300- 400), with little change from last month,” he continued.
Gadiel said the government should take two clear messages from these figures.
“Firstly – the housing supply is not robust enough and is at risk from higher interest rates. Secondly – more supply-side measures are required to allow more housing to be produced at the same cost base for developers.
“This will necessarily involve reform of planning laws and lower development levies. We’re still waiting for the Federal government to release a reform agenda, prepared by Federal treasury, and originally promised by mid-year.
“It’s time these documents were made public. No reform means an inadequate supply of housing, with significant economic and social costs for the whole community,”
Gadiel said that NSW’s continued unwillingness to seek further planning reform and reduce development levies was clearly unwise.
Australian Property Journal
