Record residential approvals to underscore resilient 2015

by Julia Corderoy12 Jan 2015
The 2015-year is set to experience ongoing activity in new home building, which will provide a much needed boost for housing supply and construction jobs, according to a property lobby.

“The record high level of total dwelling units approved remains promising across the regions which is a contrast for a nation that has underbuilt over the past decade,” Nick Proud, Executive Director of the Residential Development Council said.

“To show the current strength of the November 2014 ABS Building Approvals result, the same 12 month period ending November 2011 saw only 158,298 homes approved which is over 40,000 fewer residential approvals than today’s result.”

Proud says that the number of homes being built is finally catching up with population growth and this result can positively support improved affordability if coupled with the introduction of supply side efficiencies in land release, development assessment and tax reform in 2015/16.

“Additional income from GST and stamp duties from roughly 40,000 extra homes, underscores the potential to consider a mature consistent approach to competition policy particularly in areas such as planning reform to ensure that the strong cycle is not lost to poor planning outcomes,” Proud said.

“This is a position of strength that provides unique reform opportunity for Government’s to work with industry when it is at its best.”