Australia’s number of home construction approvals improved in May and this proves that housing markets are in the early phases of recovery. Chief economist Shane Garrett from Master Builders Australia’s, claims ABS information indicates growth has been driven by a 2.1 percent increase in new apartment approvals.
“House cost statistics published previously this week also support the opinion that in the housing market we are at a turning stage,” says Garrett. “The RBA’s recent rate cut will further assist, and the swift passage of Parliament’s tax cuts constitutes a major leap forward.” Victoria saw the biggest rise in fresh housing approvals of 14.4% in May, followed by the ACT with 7.2%.
According to the Housing Industry Association’s monthly poll of home builders, new home sales bounced back to their lowest monthly level in over a year in May. NSW, Victoria, Western Australia, Queensland, and South Australia had more than 5,000 new home sales the first time since June 2018 the index has exceeded this figure.