The construction industry has been on fire as of late, and the epicentre of the blaze has been Western Australia. Perth builders have been burning the candle at both ends to keep up with demand, what with the record high 214,331 dwelling approvals according to the Housing Industry Association (HIA). Freestanding house approval rates have also gone up by a sizeable margin – another welcome bit of good news in an economy that has seen its fair share of foul weather over the last few years.
In fact, Shane Garrett, the HIA’s Senior Economist, says that detached house building has been lagging behind the multi-unit market, even though detached house building is key to the construction industry’s recovery. Garrett called for better policy settings to encourage detached house building in order to bolster the economic recovery efforts of the industry as a whole.
Meanwhile, research has revealed that Perth has become a popular pace for the construction of new two storey homes, according to CoreLogic RP Data. In fact, when it comes to detached house approvals for the 2014-2015 financial year, WA has the five out of the top 20 approval figures for detached houses. Four out of those five positions in the Statistical Area 4 (SA4) regions were in Perth, with the majority of the approvals highest in the northwest and southeast. The southwest and northeast rounded out these four; the fifth top 20 location in WA was Bunbury with 1,567 housing approvals.
Perth did particularly well when it comes to the number of houses being approved versus the number of apartments, as only two other major metropolitan areas also had fewer apartments approved than houses. Meanwhile, the capital was no slouch when it came to apartment units, with inner and southeast Perth making it into the top 20.
For now, industry experts are keen to believe that these trends will continue for the time being, even though the future is of course uncertain. However, Perth and WA continue to perform quite well in the housing construction industry, leading to hopes that Western Australia will lead the charge in a housing approval renaissance that will bolster both the state’s economic recovery and the economy of the nation as a whole.