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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
Multi-unit approvals declined in all jurisdictions except for Western Australia (+65.2 per cent) and Queensland (+38.3 per cent).
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The ACT Government has released a consultation paper exploring the extension of occupational licensing to additional construction trades.
The Housing Industry Association (HIA) is calling for a unified national framework for granny flats and secondary dwellings to ease the housing affordability squeeze - arguing that we could learn from recent changes in Tasmania to permit up to 90 per square metre granny flats and our neighbours in New Zealand who are now fast-tracking compliant small homes.
The Housing Industry Association (HIA) has lodged a major submission calling for a comprehensive overhaul of the National Construction Code (NCC), warning that excessive regulation and complexity is slowing the delivery of new homes across Australia.
HIA is aware that industry is raising concerns about price increases to fuel and materials arising from the conflict in the Middle East. To assist members to account and respond to price increases we have prepared information on dealing with cost uncertainties and fluctuations under HIA contracts.