Housing defies national decline

NEW work to the tune of $106.9 million will bolster Greater Geelong’s housing stock as national figures point to a dramatic slowdown in residential building.

A report this week revealed 353 new homes in Greater Geelong were given the goahead by the city council in November, bringing the region’s year-to-date total to 3392.

The November figure was an increase on the previous month and also up on the previous year.

Local tradies can expect extra renovations work, with $9 million earmarked for alterations and conversions.

The report also revealed the value of all construction work approved, including non-residential projects, was $139.7 million.

The Greater Geelong results come as new home approvals continue to decline across Australia.

According to the Australian Bureau of Statistics, housing approvals dropped 9 per cent nationally between October and November, and were almost one-third lower than levels from 12 months earlier.

This was the second consecutive month-on-month decline on seasonally adjusted figures, with the latest down- turn driven largely by a huge drop in proposed unit and semi-detached house development.

Up to November, houses made up most of the building approvals (75 per cent) in Greater Geelong. Units accounted for 13 per cent.

Master Builders Australia chief economist Shane Garrett said tighter lending restrictions, prompted by the banking royal commission, and falling house prices were affecting developer confidence.

He said while the impact would hit major metropolitan areas such as Sydney and Melbourne, there could be flow-on effects in regional areas.

He said the effects could be more pronounced in some regions because of the smaller customer base, but pointed out other areas might prove resilient despite widespread downturns.

“Some areas will see stronger activity because of the structure of their local economy,’’ he said.

“There could be a new development like a large factory or a natural resources project in a certain area and that will fuel economic activity and conditions that will progress strong home building activity.”

He said housing markets in regional areas might also benefit from house prices pushing buyers to look outside larger cities.