New dwellings approvals, especially for multi-unit developments, bounced back strongly in November, according to the Housing Industry Association.
The HIA reports that new dwelling approvals rose by 7.0 per cent compared with the previous month, but were 4.8 per cent lower than a year prior.
HIA senior economist Shane Garrett says November was a “particularly good month” on the multi-unit side of the market.
Multi-unit approvals increased 17.3 per cent after they took a big fall in October, while detached house approvals declined slightly (0.4 per cent) in November.
“The year 2016 was a record one for new dwelling commencements and this will ensure that the volume of residential building activity remains elevated over much of 2017,” Mr Garrett said.
“However, we anticipate that new dwelling starts will decline over the next 12 months, with this likely to be felt on the ground towards the end of this year.”
In November 2016, Western Australia fared the best in seasonally-adjusted dwelling approvals (+24.4 per cent), followed by Victoria (+9.4 per cent) and South Australia (+7.1 per cent).
Approvals were also up in Tasmania (+5.2 per cent) and NSW (+5.1 per cent).
In Queensland, dwelling approvals fell 4.6 per cent during the month.
Originally Published On http://www.realestatebusiness.com.au/