Building approvals hit highest level on record
Residential building approvals recorded their best month on record in November, easing concerns the construction boom has peaked.
Bureau of Statistics figures showed 18,245 dwelling units were approved, seasonally adjusted, up 7.5 per cent on October's approvals.
The Housing Industry Association, which represents construction firms, said that total is almost 3 per cent higher than the previous record set all the way back in August 1994.
The HIA's senior economist Shane Garrett said the ABS figures released today ease concerns that the residential construction boom of 2014 was going to peter out early this year.
"Residential construction was the economy's good news story during 2014, and today's figures indicate that we can look forward to another positive year for the industry," he said.
"The fact that approvals hit an all-time high during November augers very well for the pipeline of residential construction work in 2015."
Commonwealth Bank economist Diana Mousina said the approvals data should drive the number of new homes being built to well above average levels this year.
"On our forecasts, dwelling commencements in 2014 should total 191,000 and 186,000 in 2015. Such outcomes would represent a significant improvement on the 150,000 average of the previous seven years," she wrote in a note on the data.
The strength was largely concentrated in high density approvals (mainly apartments) which, after a few weak months, jumped almost 17 per cent in November, backing up a near 32 per cent surge in October.
At 8,745 non-house approvals were not far from equal with detached house approvals (9,305), which eased 0.3 per cent last month, as more Australians live in apartments for cost and convenience reasons.
November's surge was also concentrated in Victoria, which saw a near 20 per cent jump in approvals and where nearly 60,000 new dwellings have been approved over the past year.
Diana Mousina said the building boom should have a positive economic flow on effect.
"Retail spending on home improvement-related items (hardware, building and garden supplies, and furniture and floor coverings) has lifted considerably as new apartments and houses are furnished," she observed.
"Construction is also very labour-intensive. The evidence to date shows that the lift in jobs in construction-related areas (particularly in residential building) has more than offset mining-related job losses."
