“The rise in building approvals for March confirms the positive outlook for the housing market will continue amid signs of growth in detached houses which have flatlined for 12 months, lagging behind high rise apartments,” Peter Jones, Chief Economist of Master Builders Australia said.
“Master Builders estimates that around 220,000 dwellings will be approved in this financial year, while a further cut in rates would add further stimulus to the new housing market, helping to boost housing supply taking pressure off both house prices and rents,” he said.
“The 2.8 per cent seasonally adjusted rise includes an encouraging 1.1 per cent rise in detached houses and a bounce-back in multi-unit developments of 5.3 per cent rise in the month,” Peter Jones said.
“The national picture shows marked differences state by state. In contrast to the monthly results, the eastern states including Tasmania continue to power ahead. The big bounce back in South Australia is not enough to offset the plunge in approvals for February and the trend remains negative with a similar story in the West,” Peter Jones said.