Dwelling approval figures for the month of May showed a 3.3 per cent increase in the approval of new single houses and flats, units and townhouses, reaching 12,729 over the month but still well below what is needed to keep up with population growth and household formation, according to building industry body, HIA.
HIA's Executive Director of Housing and Economics, Simon Tennent, said that the yawning gap between what consumers can afford to pay for new housing and the price at which the industry is able to supply product is keeping the lid on a home building recovery.
"Even after paying the exorbitant price for developed land, the direct and indirect cost of regulation on the home building industry is seeing many hang up their tools," Mr Tennent said.
On a state by state basis, seasonally adjusted approvals fell by 34 per cent in South Australia and by 8.4 per cent in Western Australia. Rises were recorded in Victoria, up 21.5 per cent, Queensland, up 8.5 per cent, and New South Wales, up 6.1 per cent.
In original terms, approvals were down by 1.4 per cent in the Northern Territory and were up by 100.8 per cent in the Australian Capital Territory.
