The Australian real estate market has gone opposite directions as home approvals get strengthened while the new home sales have declined. This data has been reflected in the May report.
Property Wire says that the multi-unit approvals have mounted up to 15.1% but the detached house approvals have gone down by 8.5%. The data shows that in May, it has a total of 218, 442 house approvals. This present data reflects a new record for over any 12 month period since 1983.
Shane Garrett, a senior economist of Housing Industry Association, says that the distribution of growth was uneven despite seeing improved levels of approvals. It is hard to say that there is victory over there increasing number of approvals when the category of the detached house approvals have been falling back and the multi units have been increasing.
In addition, Garret pointed out that in 2014 that "new home building reached an all-time high and the latest figures suggest a solid pipeline of new home building during the second half of 2015." He said further that to address the demands, the supply of new housing projects would need to stay at higher levels.
Looking at the breakdown of the figures, it shows that most of the housing approvals are in Victoria. It has a notable growth of 11%. The New South Wales and Queensland only have housing approval of 8.8% and 3.6%, respectively. Sadly, in Western Australia, it only has 0.2% house approvals.
Realty Biz News reports that between April to May sales, the data has shown 2.4% increased. According to the experts, the increased of new approvals is a good indication in real estate market in Australia. However, the detached homes approvals marked declining figures. Based on the number of new houses that were built in 2014, the most recent figures suggest that throughout the second half of 2015, new home building would continue to strengthen since prices have improved substantially.