Approval rates for dwellings rise in October, highest for high-rises since January
In October, the total number of dwellings approved increased by 6.1 percent year over year to 15,498, according to data from the Australian Bureau of Statistics (ABS). This rise was primarily driven by an increase in apartment developments approved in New South Wales and Victoria.
Within these approvals, 2,782 apartments in blocks of nine or more storeys received the green light, marking the highest number of high-rise apartments approved since January of this year. Private sector dwellings excluding houses saw a 7.1 percent increase to 5,859 approvals, while private sector house approvals inched up by 2.4 percent to reach 9,191.
Despite no cuts to the cash rate, households are showing a return to new home building due to low unemployment levels and strong housing demand, according to Maurice Tapang, an economist at the Housing Industry Association (HIA). Tapang also noted that the market is benefiting from stable growth in materials prices and a return to normal build times, resulting in a lift from its recent trough.
In almost two years, October saw the highest number of approvals, with an optimistic outlook by Tapang. Additionally, the Property Council of Australia (PCA) emphasized the importance of stabilizing the volatile numbers and continuing the upward trend in approvals. They highlighted the need to reach construction levels seen nearly a decade ago to meet ambitious housing targets set by the National Housing Accord.
South Australia Receives Housing Boost
The Albanese government pledged $70 million to fast-track 3,641 dwellings in key growth areas in South Australia. This includes the construction of 1,000 new homes in Thebarton, with at least 200 being affordable, and 700 affordable homes in the City of Playford. Ministers for Infrastructure and Housing, Catherine King and Nick Champion, respectively, emphasized initiatives to streamline planning approvals, incentivize the construction workforce, and implement policies to boost housing supply and accelerate construction.
