The ABS reports that national private sector home building approvals seasonally adjusted increased by 11.5% over December to new record highs.
Dwelling approvals were also higher by 4.3% over 2020 compared to 2019.
Not surprisingly, house approvals have contributed to most of the growth over the past year, driven fundamentally since August by the introduction of the Home Builder grant.
By contrast unit building approvals were down sharply again over the year, falling by 9.3% – the fifth consecutive fall in annual approvals and the lowest annual total recorded since 2011.
63,655 private sector units seasonally adjusted were approved for building over 2020 which is nearly half the record 118,163 approved over 2015.
The imposition of strict lending constraints through financial regulations has been the key catalyst for the ongoing collapse in national new unit building over the recent years.
This collapse has significant long-term consequences for the efficient and orderly supply of housing, and for an already underperforming national economy.
The effects chronic underbuilding of recent years will be masked marginally by reduced migration through border closures, but emerging housing shortages will nonetheless act to place ongoing upward pressure on home prices.
The end of the second phase of the Home builder program in March will stifle the recent short -term surge in home building and reinforce emerging undersupply in most capitals.
Subscribe & don’t miss a single episode of Michael Yardney’s podcast
Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.
Need help listening to Michael Yardney’s podcast from your phone or tablet?
We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.
Prefer to subscribe via email?
Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.