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{{propApi.successMessage}} {{region}} Change locationDetached building approvals remain elevated in January
Detached building approvals remain elevated in January
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“Narrowly behind December, the strong result in January was the second largest number of detached approvals in any month since the series began in 1983.
“Detached house approvals in the three months to January 2021 are 44.5 per cent higher than the same time last year.
“Building approvals data lags behind other leading indicators including new home sales and housing finance data.
“We saw a spike in new home sales in December arising from HomeBuilder. These projects will continue to progress through the administrative process to gain building approval in the coming months.
“With home buyers able to access the reduced HomeBuilder grant until the end of March we expect sales and approvals to remain elevated for several more months.
“The majority of homes approved in January are likely to already have now commenced work on site.
The strong pipeline of work will ensure ongoing employment in the sector through 2021 and into 2022.
“There is a significant divergence in the conditions facing detached builders versus apartment builders.
“Multi-unit approvals fell by 5.7 per cent in the three months to January 2021 compared to the preceding quarter and are 15.6 per cent lower than the same time last year.
“Multi-unit projects that are gaining approval at this time are likely to have commenced the planning and building approval process before COVID.
“The apartment market is likely to be constrained until overseas migration returns,” concluded Ms Lillicrap.
In seasonally adjusted terms, the number of detached dwelling approvals during the three months to January 2021 compared to the same time last year increased in all jurisdictions
- Western Australia (+124.1 per cent) Tasmania (+60.6 per cent)
- Queensland (+51.8 per cent)
- South Australia (+45.7 per cent)
- New South Wales (+28.4 per cent)
- Victoria (+23.8 per cent).
- In original terms, they improved in the Northern Territory (+82.0 per cent) and
- the ACT (+35.9 per cent).
Multi-unit approvals declined in all jurisdictions except for Western Australia (+65.2 per cent) and Queensland (+38.3 per cent).
- Tasmania (-75.0 percent)
- Victoria (-49.3 per cent)
- South Australia (-11.6 per cent)
- New South Wales (-4.6 per cent
- They declined in original terms in the Northern Territory (-10.5 per cent) and
- the ACT (-18.6 per cent).
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Free training to help builders avoid costly fines and protect local waterways
“The Housing Industry Association (HIA), in partnership with the MidCoast Council, is pleased to be delivering a free Erosion and Sediment Control training workshop this month to support building professionals protect local waterways and meet compliance requirements,” said HIA Hunter Executive Director, Craig Jennion.
Increases to annual minimum wage
The Fair Work Commission handed down its Annual Minimum Wage decision today with a 4.75 per cent increase to the national minimum wage and modern award minimum wages.
Approvals reflect good momentum heading into 2026
“Building approvals ticked down by 3.4 per cent in April, including a 0.9 per cent decline for detached houses and a 7.2 per cent decline for multi-units,” stated HIA Senior Economist Tom Devitt.
Wage ruling will increase housing costs and hit small builders hardest
“The Housing Industry Association (HIA) is deeply concerned with today’s Fair Work Commission decision to increase the Minimum Award Wages by 4.75 per cent, which will make it harder to deliver new homes at the scale Australia urgently needs,” said HIA Managing Director, Jocelyn Martin.