There was a welcome jump in the number of new homes approved in the month of November 2006, according to data released by the Australian Bureau of Statistics (ABS) this week.
The figures show that building approvals rose by 4.1 per cent in November to a level of 12,739 - just 0.4 per cent lower than in November last year. Renovations also improved, with the seasonally adjusted value of alterations and additions rising 2.2 per cent to $490.9 million.
Approvals for detached houses rose by 3.1 per cent to a level of 8,881, up 3.4 per cent on last year. The number of approvals for flats, units and townhouses rose by 2.4 per cent to 3,421.
HIA's Executive Director Housing and Economics, Simon Tennent, said that the industry needs to approve around 13,500 dwellings each month to house Australia's growing population.
"It is hoped that with this build up in demand at a time of increased savings, higher wages and an improvement in land and home building trades, the industry will be back on track in the early part of 2008", Mr Tennant said.
"In the meantime, the continued expansion within the renovation market as shown in today's 2.2 per cent increase in the value of work approved will cushion the industry throughout the year", he added.
On a state by state basis, seasonally adjusted approvals rose by 18.5 per cent in Western Australia, 17.2 per cent in South Australia, 7.7 per cent in Victoria and 6.8 per cent in Tasmania.
Approvals were weak however in New South Wales (down 10.6 per cent) and Queensland, down 4.1 per cent
