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{{propApi.successMessage}} {{region}} Change locationBuilding approvals fell sharply during Omicron outbreak
Building approvals fell sharply during Omicron outbreak
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“Approvals for detached houses fell by 17.3 per cent and 43.6 per cent for multi-units.
“This sharp fall in January can be attributed to staff shortages during the Omicron outbreak and a higher than usual uptake of holiday leave.
“There are no indications that home building activity is facing weak demand any time soon, despite temporary interruptions from the Omicron outbreak in January.
“The absence of Council workers, private certifiers and building business staff will have weighed on the ability to process approvals.
“We anticipate an above average volume of approvals will be reported in coming months as the impact of this disruption fades.
“Early indications are that home building bounced back as the Omicron wave abated and builders were able to return to work.
“There are more homes under construction at present than in any previous cycle and this will continue to grow until mid-2022.
“The elevated volume of homes approved, but not yet commenced construction, will ensure that January’s brief disruption won’t change builders’ busy schedule this year.
“The Reserve Bank has retained its ‘patient’ stance regarding its record low cash rate, as it waits for consumer behaviour to normalise, supply chain issues to ease and other international developments to emerge.
“This will help ensure that the salient constraint on builders this year remains the price and availability of land, labour and materials, not weak demand,” concluded Mr Devitt.
In seasonally adjusted terms, total residential building approvals decreased in the last three months compared to the previous quarter in Western Australia (-21.0 per cent), New South Wales (-19.1 per cent), Victoria (-13.4 per cent), South Australia (-5.8 per cent), and Queensland (-5.7 per cent), while in original terms, increasing in the Northern Territory (+3.4 per cent), the Australian Capital Territory (+11.0 per cent) and Tasmania (+11.1 per cent).
Supporting the next generation of builders is key to WA’s housing future
Western Australia’s construction industry has faced significant disruption over the past five years, with rising costs, supply chain challenges, and economic uncertainty contributing to the loss of hundreds of registered builders and many more contractors across the state. As the housing market continues to grow and demand for new homes intensifies, rebuilding the builder base is critical — and that starts with supporting new entrants through the builder registration process.
Builder Support Program – supporting the next generation of builders
Over the past five years, Western Australia’s construction industry has experienced significant disruption. Rising costs, supply chain challenges and economic uncertainty have contributed to the loss of hundreds of registered builders and many more contractors across the state. As demand for new housing continues to grow, rebuilding our builder base is essential — and that starts with supporting new entrants through the builder registration process.
HIA welcomes Premier’s acknowledgement on Homes Tasmania performance
The Housing Industry Association (HIA) welcomes the Premier’s acknowledgment in Question Time today that he is “...less than satisfied with Homes Tasmania’s performance…”.
Building Approvals in the ACT Continue to Languish
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