NSW building approvals highest in over a decade

Sydney-is-likely-to-be-a-big-recipient-of-the-increased-housing-stock_157_85175_0_14101334_300Building approvals are climbing higher and higher across Australia, with New South Wales a major beneficiary, the latest Australian Bureau of Statistics (ABS) figures have revealed.

The number of dwellings approved across Australia has climbed for three months now, rising 1.2 per cent in August. According to Minister for Planning Pru Goward, NSW’s share amounted to 52,000 approvals over the year to August – or in other words, 1,000 new homes every week.

This was the highest level of housing approvals in the state since all the way back in 2000, during the year-long period that ended in May of that year. New South Wales was also one of two states that saw private sector housing approvals rise during the month, a rise of 1.8 per cent.

As for August itself, dwelling approvals for the state numbered 4,200.

Ms Goward was positive toward the figures, pointing out the importance of extra housing in light of NSW’s rapidly growing population.

“We know there will be 2 million extra people living in NSW by 2031, which means we’ll need about a million more homes,” she said in an October 2 release.

This news was not only good for those NSW residents who hoping to find a home to settle into in the future. It was also a positive signal for housing affordability going into the future. Increased volume of housing stock will help ease competition among buyers, which should help to keep property values flat as time goes on.

“This is smart planning for a growing NSW – making sure that the number of homes available keeps up with the number of homes we need will help put downward pressure on house prices,” Ms Goward commented.

Those thinking of purchasing a home will want to keep their eye on the NSW market going forward, particularly Sydney. As the location of the majority of the state’s population, it is likely many of these dwellings will be located there.

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