Detached dwelling approvals break another record in April

New builds and renovation applications are going through the roof. Photo: file
New builds and renovation applications are going through the roof. Photo: file

Detached building approvals reached a record level for the third consecutive month in April 2021, according to Australian Bureau of Statistics monthly building approvals data released this week.

The result refers to detached and multi-units data covering all states and territories.

"There is an unprecedented volume of building starts set to occur in 2021," said Housing Industry Assopciation economist, Angela Lillicrap.

"HomeBuilder and low interest rates have facilitated in a surge in demand for detached homes that will see a record number of detached homes built this year and into 2022.

"Detached housing approvals increased by 14.8 per cent in the three months to April 2021, to be 63.7 per cent higher than the same time last year."

But the surge in demand for new homes was countered by a drop-off in other types of dwellings.

The number of dwellings approved overall fell 8.6 per cent in April (seasonally adjusted), following an 18.9 per cent rise in March.

The fall in the total number of dwellings approved in April was driven by private sector dwellings excluding houses, which fell 28.6 per cent.

'Private sector dwellings excluding houses' includes semi-detached, row or terrace houses, townhouses and apartments.

"While there was a fall in overall approvals, the April result highlights the continued strong demand for detached housing," said Daniel Rossi, director of construction statistics at the ABS.

Looking ahead, Ms Lillicrap said that detached housing approvals are expected to stay elevated for several more months.

This is the highest quarterly result (for renovation approvals) since records began in 1973.

Angela Lillicrap, HIA economist

"Although new home sales fell in April, the results suggest that a significant number of new homes are still entering the construction pipeline for customers post HomeBuilder," she said.

"Low interest rates, strong house price growth and an increased preference for detached homes and regional areas will continue to drive demand for new houses over the months to come.

"The value of renovations activity approved is also elevated, up by 49.7 per cent in the three months to April 2021 compared to the same time last year.

"This is the highest quarterly result since records began in 1973."

Further information is available in Building Approvals, Australia.

This story Detached dwelling approvals break another record in April first appeared on Mandurah Mail.