Latest ABS building approval data for November has reported another rise in planned building following October’s surge in activity.
Total capital city dwelling approvals increased marginally by 203 or 1.4 percent to 14,816. Unit approvals again accounted for most of the rise, increasing strongly by 14.9 percent or 1,116 over the month to 8,609.
By contrast, approvals for houses fell by 12.8 percent or 913 to 6,207. November’s house approvals were the lowest recorded since June.
Capital city dwelling approvals increased by 14.6 percent or 17,556 to 137,709 over the first 11 months of 2014 compared to the same period in 2013. Unit approvals have increased by 9.7 percent or 6,043 to 68,169 with housing approvals up by 19.8 percent or 11,513 to 69,540 over the same year to date comparisons.
Melbourne continues to lead capital city dwelling approval numbers reporting 5,773 over November, an increase of 851 or 17.3 percent compared to October.
Sydney provided the next highest number of dwelling approvals over the month at 3,279, however this was a fall of 235 or 6.7 percent from the previous month’s total.
Brisbane continues to lead the mainland capitals in new dwelling approvals growth over the past year with planned construction increasing by 22.7 percent or 3,659 to 19,749 over the first 11 months of 2014 compared to the same period the year before.
Despite overall strong housing market activity and a robust local economy, dwelling building approvals in Sydney increased by just 5.3 percent or 1,692 to 33,527 over the first 11 months of last year compared to the same period in 2013 – the worst growth performance of all the mainland state capitals.
Relatively low new building levels in Sydney are set to continue the undersupply of housing in that market with continued upward pressure on prices and rents.
Record levels of unit approvals in Sydney over 2013 have moderated with the number approved over the first 11 months of 2014 down by 2.8 percent or 614 to 21,802 compared to the same period over the previous year. By contrast housing approvals in Sydney have increased by 23 percent or 2,336 to 12,339 over the same year to date comparisons.
Unit approvals however in Melbourne remain strong, increasing by 21 percent or 4,177 to 24,054 over the first 11 months of 2014 compared to the same period the year before.