Healthy 2018 residential construction outlook

Latest ABS figures on new home building approvals indicate that activity across the Hunter performed strongly in 2017, reported the Housing Industry Association, the voice of Australia’s residential building industry.

“In total 4,618 approvals were issued for new dwellings across the Hunter, compared to 4,293 in 2016, an increase of 8 per cent on already elevated levels”, said Craig Jennion, HIA Hunter Executive Director.

“Much of the heavy lifting for the residential sector continues to occur in the Lower Hunter, with the local government areas of Lake Macquarie, Newcastle and Maitland continuing to be the top 3 locations for approvals, accounting for over 77 per cent of total dwelling approvals”, explained Mr Jennion.

“Pleasingly over the last year it was in regional locations that the largest percentage increases in total dwelling approvals occurred. Dungog was the strongest, up 49%, followed by Cessnock, up 17%, and Scone, up 13%. Lake Macquarie took out the title of ‘biggest mover’ increasing their housing approvals by 134 dwellings over 2016”, explained Mr Jennion.

“The performance of new home building approvals across detached new homes and multi-unit approvals unfortunately fluctuated in 2017. Accounting for 61 per cent of all approvals detached house approvals decreased by 3 per cent compared to the 2017 calendar year, while multi-unit approvals, increased by 29 per cent over the same period”.

“Despite this, these results point to very healthy levels of activity in the residential construction sector in early 2018 and reinforce the important contribution that residential construction continues to make to the local economy,” concluded Mr Jennion.

Source: HIA