The Australian Bureau of Statistics (ABS) building approvals in September are within an arm’s reach of pre-pandemic levels.
Building approvals reached a pre-pandemic level of 15,827 approvals in September, marking a 15 per cent rebound.
The ABS also reported owner-occupier loans for dwellings increase by eight per cent month over the month.
According to Maree Killroy, a senior economist for BIS Oxford Economics, the data demonstrates a positive for the residential sector in the 2021 financial year.
“Existing home demand continues to grow with no signs yet of momentum abating, despite the clear headwinds facing the economy,” Killroy said.
“The pandemic has acted to pull forward upgrader and downsizer decisions for some households, with record low interest rates helping to draw out demand. For new dwellings, the HomeBuilder program along with state level incentives are providing a considerable boost, which should continue in the December quarter.”
There was a 27 per cent increase to loans for the construction dwellings, largely due to new home grants that reached up to $55,000 in Western Australia.
“This is directly translating to the strong growth in house approvals,” Killroy said.
“For new dwellings, the HomeBuilder program along with state level incentives are providing a considerable boost, which should continue in the December quarter.”