A 10 per cent jump in approvals of detached houses in the last calendar year shows that growth is returning to house building after a subdued decade.
Stand-alone houses, not apartments, account for about two-thirds of total housing approvals and are a crucial indicator of underlying market strength.
Last year’s seasonally adjusted figure of 99,508 was the highest in three years.
Not even a 3.2 per cent dip in approvals for December could dampen industry views that the worst is over.
“Our expectation is that the trend will continue to remain positive,” said Brian Haratsis, the Executive chairman of property consultancy MacroPlan.
Mr Haratsis said, “The Queensland issue is that Queensland hasn’t begun to respond post-GFC. They are very dependent on jobs.”
In contrast to the widely reported slowdown in the resources industry, the Western Australian market for detached houses continued to grow strongly last year.
Total WA detached-house building approvals jumped almost 38 per cent last year to 22,176 from 16,114 in 2012.
Mr Haratsis said this reflected the state’s heavier reliance on overseas migration than a state like Queensland, which primarily relied on migrants from the southern states, principally NSW. Continued overseas immigration was supporting the Western Australian housing market and easing the pace and depth of a slowdown, he said.
MacroPlan MacroPlan’s experienced and qualified economists align their understanding of macro-economic forces with micro-economic variables such as geographic and industrial characteristics, demographics, labour market shifts, resource demand and commercial realities. Contact Brian Haratsis, Executive Chairman today to discuss your property research requirements.