Record high for new home approvals

More new homes were approved during the month of November than in any other month on record.

According to data from the ABS released today, the seasonally-adjusted number of approvals for new homes totalled 18,245 during November 2014, nearly 3% higher than the previous record, set in August 1994.

The approval rate was 10.1% higher than the rate twelve months earlier, a growth primarily driven by the construction of multi-units, which rose by 18%.

Detached house approvals also increased, posting a 3.6% rise over the same period.

Housing Industry Association senior economist Shane Garrett said residential construction was the economy’s “good news story” for 2014.

“Residential construction is now a central pillar of support for domestic demand in Australia,” he said.

“It is important that policy reform continues in the areas of planning, land supply and removing the taxation burden on new home building.”

At a state level, Victoria saw the highest increase in approvals, with a 19.7% increase on the October figure, followed by Tasmania (8.2%), while South Australia and NSW both recorded negative growth.

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