Budget must support new home building as building approvals fall

Australian apartment building approvals experienced a sharp downturn in March, as approvals dropped by 28.4 percent throughout the month, supporting a fall in total dwelling approvals of 19.9 percent.

Matthew Pollock, national manager of housing at Master Builders Australia, remarked that the statistics highlight the need for the Federal Budget to support a greater level of investment into Australia’s housing sector.

“These latest results suggest the housing boom which has been driven primarily by apartment construction in Sydney and Melbourne is beginning to run out of steam,” he said.

Apartment approvals in New South Wales fell by 27 percent, to 2,526, the lowest level since January 2016. Victoria did not fare much better, with apartment approvals down by 13 percent in March.

However, the value of alterations and additions increased by 1 percent in March and has risen for seven straight months.

“The record rates of new home building last year and this year are a result of the industry playing catch-up after a decade of underinvestment into our housing stock,” Pollock added.

“New home construction will need to be maintained at 200,000 new dwelling per year for at least the next five years if we are to meet the needs of a larger population and ensure supply constraints do not push up future house prices.”