Despite the federal government’s HomeBuilder scheme coming to a close, house building has reached record numbers in April, as new apartment development activity hits its lowest point since 2012.
Achistar’s end of month reports for house and townhouse & unit activity shows that strong housing markets and a revived and growing economy is fueling the boost in house building, with the government scheme ending on March 31.
Building numbers are expected to rise until the medium-term, due to various other stimulus initiatives coming to a close.
An annual record of 124,701 new housing developments has been reported over the year, a stunning turnaround considering the COVID-19 pandemic. Building across all sectors in Perth has continued to increase, even to the point where it is going against the unit and townhouse markets of the other major cities.
Perth growth levels are at a staggering 118.0% increase in comparison to 2020, with Melbourne recording the most new housing approvals for the month out of all major cities at 2662, up 11.5% compared to the same time last year. Sydney approvals were second last at 1321, despite recording the third highest increase in activity. Its average building cost was highest at $368,643, followed by Melbourne $339,268, Brisbane $305,431, Perth $274,838 and Adelaide $260,095.
Units and apartments on the other hand were down 29% compared to this time last year, with annual activity levels now the lowest since 2012.
High density approvals across capital city’s now accounts for just 32.2% of the market over February and the lowest monthly result since September 2009.
Although townhouse construction continues to outperform units, activity levels nonetheless declined over the first two months of 2021 - down by 12.6% compared to the same period last year. Unit development fell sharply again by comparison - down by 34.6% over the same this year to date contrasts.
All capitals with the exception of Perth — with an 8.7% increase compared to the previous year’s total
— recorded sharp falls In ABS unit building approvals over the year ending February compared to the previous year's activity with Sydney down 9.6%, Melbourne down 37.0%, Brisbane down 4.6% and Adelaide lower by 46.6%.
Brisbane reported the highest increase in townhouse building approvals over the year ending February 2021 up by 25.1% followed by Melbourne up 7.1% and Sydney higher by 0.1%. Townhouse building approvals were down by 13.2% for Adelaide and 21.9% for Perth on the same year on year comparisons.
Both reports can be accessed via the Archistar website. For more information, click here.