“Building approvals in November (2019) reached their highest level since March 2019, up by 11.8 per cent due predominantly to a surge in approvals in New South Wales,” stated HIA Economist Tom Devitt.
The Australian Bureau of Statistics released its monthly building approvals data covering all states and territories.
“The improvement in approvals in November (2019) is consistent with other leading indicators which show that the market started to stabilise around April 2019,” added Mr Devitt.
“The strong result in New South Wales is largely due to strength in approvals for apartments. South Australia, Queensland and the ACT also saw improvements in building approvals in the month of November (2019).
“These improvements are a most welcome reprieve from the declines that began in late 2017 and reinforce the positive developments we have already seen in lending finance and new home sales since April 2019.
“Strong house price recovery in the established market in the second half of 2019 should also bring investors back to the market as well as support an increase in activity across the economy.
“The Australian Government’s First Home Loan Deposit scheme was rolled out on the 1st of January this year (2020). This will help support broader activity by assisting more Australians take their first steps towards home ownership.
“The market nonetheless remains well down from previous years and concerns relating to overly tight credit conditions persist in weighing on the market,” concluded Mr Devitt.
In seasonally adjusted terms, building approvals for the month of November 2019 increased in New South Wales (+52.8 per cent), South Australia (+3.8 per cent) and Queensland (+1.0 per cent), while declining in Tasmania (-11.5 per cent), Western Australia (-6.1 per cent) and Victoria (-1.8 per cent). In trend terms, the Australian Capital Territory increased by 0.3 per cent while the Northern Territory declined by -2.6 per cent.