15/10/2014 - 15:18

Residential building hits all-time high

15/10/2014 - 15:18

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Residential building hits all-time high

Western Australia’s residential building sector has broken historical records, setting a new high of $1.99 billion worth of work in June, according to data released by the Australian Bureau of Statistics.

The ABS figures showed $1.56 billion was for new detached housing construction.

Urban Development Institute of Australia WA chief executive Debra Goostrey said the record land sales achieved in 2013 were driving dwelling approvals and construction increases.

“For a long time we have been in a situation of dwelling undersupply and this activity has ensured the gap between demand and supply has not widened further,” shesaid.

Ms Goostrey said there had been 15,510 private sector housing approvals in the year to August, the fastest first eight months of a year on record.

But the records aren’t expected to continue, with land sales and housing approvals showing signs of cooling.

“The slowdown will enable the industry to catch up as land sales in 2013 had stretched the gap between the land contract and the housing construction commencing up to nine months,” Ms Goostrey said.

“That time lag has now been reduced to less than six months, which is sustainable in the longer term.”

 

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