SURGE IN NEW HOME APPROVALS

GOVERNMENT housing schemes such as HomeBuilder are causing a surge in the number of newly approved residential properties being built across Australia.

Latest figures from the Australian Bureau of Statistic shows total dwelling approvals across both commercial and residential markets rose 2.6 per cent in November compared with the previous month.

The rise in new building approvals is being fuelled by additional stimulus measures implemented by federal and state governments in order to boost economic activity during the downturn sparked by the coronavirus pandemic.

Private sector housing is the main influence causing the rise in the economic indicator, with $5.8bn worth of new residential buildings being committed over the month.

Residential housing approvals have risen for five consecutive months and are at levels not seen since December 1999. Housing Industry Association economist Angela Lillicrap said the low interest-rate environment was also fuelling the increase in approvals.

“HIA New Home Sales data suggests that detached house building approvals will continue to be strong over the coming months,” she said. “The extension of HomeBuilder at the end of November is not a factor in this month’s result but will see the strength in detached house approvals extend into 2021.”

She also noted apartment markets were likely to remain constrained while population growth was slow.