Property values depend on a number of factors – the health of the economy, confidence in the employment market, affordability of interest rates, price trends and the number of new homes being completed.
The supply factor – the number of homes being built – continues to be a huge political issue in almost every mature economy around the world.
In Australia, our home-building policies and execution is not even keeping pace with the net migration figure. And this is one of the factors that underpins the strong market values we’re witnessing in almost every capital city.
Building approval numbers released by the Australian Bureau of Statistics (ABS) is a benchmark for how the nation is meeting the challenge of building more homes.
The latest ABS numbers give some cause for optimism, but the figure has ebbed and flowed for many months now.
The total number of dwellings approved rose 4.4% in September to 14,842, following a 3.9 % fall in August, the ABS said.
The value of total buildings approved rose 1.4% ($13.61 billion), following a 1.1% rise in August.
The value of approved non-residential building rose 3.6% ($5.57 billion), following an 11.3% August increase.
Total residential building value was flat ($8.04 billion).
ABS head of construction statistics, Daniel Rossi, said: “The rise this month was driven by increases across all dwelling types. Private sector houses reached 9,745 approved in September to be at the highest level since August 2022.
“Private dwellings, excluding houses, rose by 4.7% but remain at subdued levels following a 13.5% fall in August.”
This segment accounted for 4,653 dwellings and is 12.2% lower than one year ago.
The September result was driven by a rise in approvals for high-density apartments. There were 1,815 apartments approved in nine or more storey blocks in September compared to 1,201 in August.
Despite mixed results across the states, private sector house approvals across Australia rose 2.2% to be 16.7% higher than in September 2023. South Australia recorded the largest increase of the states at 10.3%. Western Australia also continued to rise, approving 1,661 private sector houses, its highest number since May 2021.