Building approvals bounce back in February

Peter Terlato 3 April 2017

Construction

Approvals jump up in NSW, Victoria, Tasmania and SA.

After declining for eight straight months, the total number of national dwelling approvals rose 0.8% in February 2017, according to the latest data.

The Australian Bureau of Statistics (ABS) reports building approvals increased in New South Wales (2.5%), Victoria (1.4%), Tasmania (0.9%) and South Australia (0.5%).

However, approvals decreased substantially in the Australian Capital Territory (-15.6%), the Northern Territory (-12.3%) but more slightly in Queensland (-0.7%) and Western Australia (-0.2%).

The upturn in dwelling approvals did not affect the ongoing drop in approvals for private sector houses, with the ABS reporting figures were down 0.6% month-on-month in February.

For the seventh consecutive month, the value of total buildings approved fell, down just 0.1% in February.

Residential building values rose 1.5% in February, while non-residential values fell 3.3% month-on-month.

House prices - particularly in Sydney and Melbourne - are rising at an alarming rate, while population growth, slow wages growth and investment are some of the key concerns affecting housing affordability.

Additionally, a panel of market experts insist that first home buyers in Australia should not be able to access their superannuation to finance their property purchases, labelling this practice as "irresponsible".

Buying a home or investment property? It pays to compare and research your finance options.

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