There has been a lot of activity in the construction sector and builders in WA are very busy at the moment. However, the latest approvals figures from the Australian Bureau of Statistics (ABS) reveals that there is still room for improvement as home building in the state has flattened out.
Building approvals Australia wide reached a new annualised record – 203,182 in seasonally adjusted trend terms. The Property Council of Australia noted that this was only the second time building approvals for a 12 month period have topped the 200,000 mark – the previous record being set in December last year.
Nick Proud, the Property Council’s executive director for residential, noted that the real challenge is converting approvals figures in dwelling commencements. He noted that costs, delays and obstructive policy settings could hinder this.
“That’s why reform is so vital, to ensure that the high approval numbers are translating into construction of the new homes needed to meet demand and keep a lid on prices,” said Mr Proud.
“It’s yet another reason why we can’t afford to be discouraging foreign investment, which is so critical to turning approvals into actual builds.”
It’s important to remember, as the Property Council points out, that approvals figures and actual building commencements are not necessarily one and the same thing. However, with Western Australia’s approvals figures dropping by 1.3 per cent in trend terms in January, there could be room for government to ease the process of getting homes approved.
There is also the distinct possibility that developers are choosing quality over quantity, looking to produce luxury homes rather lots of cheaper houses.
While the larger picture is important for the entire construction industry to consider, as custom home builders we make sure that our primary focus is each and every individual project we work on. At Exclusive Residence attention to detail and fine finishes are the hallmark of our work, and we don’t let numbers get in the way of this.