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Summary
- The private sector house approvals surged for the sixth straight month in December and hit a record high amid robust demand due to stimulus measures and low-interest rates.
- While the approvals for private houses jumped 15.8 per cent in December, dwellings (excluding houses) advanced 2.3 per cent, the data released by the Australian Bureau of Statistics (ABS) on Wednesday showed.
- South Australia, Victoria, and Western Australia touched record highs in private house approvals.
The private sector house approvals surged for the sixth straight month in December and hit a record high amid robust demand due to stimulus measures and low-interest rates. While the approvals for private houses jumped 15.8 per cent in December, dwellings (excluding houses) advanced 2.3 per cent, the data released by the Australian Bureau of Statistics (ABS) on Wednesday showed.
Image Source: Shutterstock
South Australia, Victoria, and Western Australia touched record highs in seasonally-adjusted terms in private house approvals, said Daniel Rossi, Director of Construction Statistics, ABS. The total number of approved dwellings was 4.8 per cent higher in 2020 compared to 2019, despite the uncertainty among developers and households during the calendar year. The demand for houses and other dwellings was significantly impacted in 2020 due to the coronavirus pandemic-induced lockdowns.
Approvals across states
In December 2020, the total number of dwellings which were approved surged 10.9 per cent. The dwelling approvals climbed across all states, with Tasmania leading at 66.5 per cent, Queensland at 24 per cent, South Australia at 16.7 per cent, Victoria at 8.6 per cent, Western Australia at 7.8 per cent, and New South Wales at 1.8 per cent.
Image Source: ABS data, 3 February 2021
READ MORE: Housing Market Set to Turn Bullish as Demand Skyrockets
Similarly, private house approvals also surged across all states - South Australia (up 33.6 per cent), Victoria (up 17.2 per cent), New South Wales (up 16.2 per cent), Queensland (up 7.5 per cent), and Western Australia (up 5.3 per cent).
Image Source: ABS data, 3 February 2021
Residential building value
The value of total building approved also jumped 4.9 per cent in December, driven by non-residential buildings’ value. After falling 27.7 per cent in November, the value of non-residential buildings surged 10.1 per cent. Besides, the value of the total residential building climbed 2.3 per cent. It included a 1.4 per cent rise in new residential buildings and an 8.1 per cent rise in alterations and additions.
READ MORE: Housing Loan Commitments reach Record High in November 2020
