Building approvals take a hit in February

Building approvals took a dip in Western Australia in February, adding to mounting evidence that Perth’s home building sector is in for a slower year after all-time records were rewritten in the last 12 months.

The Australian Bureau of Statistics said there were 2,217 homes approved to be built in WA in February, on seasonally adjusted terms, down 8 per cent on January, when there were2,411 approvals.

The approvals in February comprised of 1,784 detached houses and 359 apartments, with the remainder comprising additions and alterations.

The dip in WA wasn’t enough to stop the momentum of the wider Australian market, with dwelling approvals reaching their second highest level on record.

Across the nation, home approvals totalled 18,768 in seasonally adjusted terms, down 3.2 per cent on the previous month, which was the all-time high.

In the 12 months to the end of February, 205,796 homes were approved to be built across Australia.

“At a time of weak overall domestic demand, new residential construction is acting as a welcome pillar of support,” Housing Industry Association senior economist Shane Garrett said.

“A steady pipeline of new homes represents the most effective solution to alleviating housing affordability pressures.

“Governments at all levels must work to ensure supply constraints do not impede the continuation of elevated levels of new home construction.”