Highest ever approvals point to looming housing boom

The latest building approvals show that Australia has recorded more than 200,000 dwelling approvals for the first time ever.

“The ABS building approval figures released today that show 200,814 approvals in 2014, support Master Builders forecast of a looming residential building boom in 2015, and challenge preconceptions that the approvals growth cycle had peaked,” Peter Jones, Chief Economist of Master Builders Australia said.

“The slight fall back in approvals for December 2014 of 3.3 per cent seasonally adjusted came after the spikes seen in October and November 2014 of 11.9 and 7.7 per cent seasonally adjusted and strongly positive trend growth,” he said.

“The historic high is being driven by the boom in apartment building in Sydney and Melbourne that shows no immediate sign of abating,” he said.

“Builder confidence will be boosted by the strengthening pipeline of work that will drive much needed job creation and investment in both the industry and the wider economy,” Peter Jones said.

“The boom in approvals will eventually flow through to increased housing supply and work to help ease affordability pressures,” he said.

“However, urgent reforms to remove the shackles of poor land release strategies, inefficient developer charges/ infrastructure levies as well as poor planning and development programs are needed if the housing upturn is to gain further traction,” Peter Jones said.