Building Approvals on the Rise

02 August 2017

Tasmanian Building Approvals on the Rise

 

The latest building approval figures for June reflect an increasingly buoyant residential market according to Master Builders Tasmania (MBT).

Mr Michael Kerschbaum, MBT’s Executive Director said, “The June approval figures, released today by the Australian Bureau of Statistics, show Tasmania’s building and construction industry is definitely improving with dwelling approvals increasing steadily since August 2016 in trend terms.  The June approval figure of 213 dwellings means that Tasmania has recorded more than 200 approvals a month in 3 of the last 4 months, the first time since early 2016.”

“After a downturn flowing from the reduction of the First Home Builders Boost, dwelling approvals have rebounded.  MBT only sees the figures further improving from here as underlying demand due to a tight rental market and higher population growth continue to contribute to the construction of more dwellings.” Mr Kerschbaum stated.

Mr Kerschbaum added, “What we have seen is a dramatic downturn in approvals over the last 3 years which is really starting to bite.  In 2014/15 2,822 dwellings were approved, but this figure fell to 2,212 in the last financial year (2016/17).  The most recent increase in dwelling approvals clearly indicates that approvals have bottomed out and MBT expects the next few years to show a steady improvement in terms of dwelling approvals.  MBT also believes that the number of apartments and other housing alternatives (to detached dwellings) will start to increase as a proportion of overall approvals.”

Mr Kerschbaum concluded, “Non-residential approvals were modest with June recording $32.5 million in approvals, but this figure doesn’t correlate with work on the ground which is extremely high, especially in the South of the state.  Non-residential construction activity continues to build with multiple large projects either underway or about to commence.  MBT also expects non-residential approval values to climb from their low point in 2016/17 of $463.3 million.”

 For further comment contact Michael Kerschbaum on 6210 2000 or 0438 343 810

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