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home building approvals leap again

Home building approvals increased in May, according to recent figures from the Australian Bureau of Statistics. For families looking to get a leg up in the property market with a new home building, such findings are promising.

In seasonally adjusted terms, 16,425 dwellings were approved in May, marking a 9.9 per cent increase on the previous month, the ABS explained in a July 3 release.

Between May 2013 and May 2014, total dwelling approvals soared by 14.3 per cent. 

The Housing Industry Association (HIA) has commented on the figures, noting that May's performance takes national dwelling approval figures closer to peak levels observed in very late 2013 and January 2014.

"The three consecutive months of declining approval numbers following the peak in January this year had caused some observers to start questioning the longevity of the home building recovery. This result gives us confidence that the recovery has a way to run yet," explained Geordan Murray, economist at the HIA.

From smaller single storey properties to expansive double storey home designs, those considering jumping on the new property trend certainly have options open to them.

Residential building approvals peaked in the first month of 2014, with over 17,700 dwelling approvals, said Mr Murray. 

During this time, Australia's five biggest states were facing high approval figures. However, "the characteristic volatility in multi-unit approvals" has resulted in a dip in overall approval numbers since, Mr Murray noted.

"The housing recovery, which was initially confined to New South Wales and Western Australia, appears to be gaining broader momentum. Approvals in the three months to May are markedly higher than the same time last year in all jurisdictions, ACT is the only exception."

With Western Australia recognised as a leader in housing recovery, building a property in Perth could be a smart option.