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Home building activity is facing a boom in Australia especially in Victoria and Western Australia as a result of increasing population and rising competition in the market.
- As per the figures, across the nation there is a surge in dwelling approvals across most states, maintaining a record up to 20% on the very same time last year.
- It was noted that from the eight months to February 2014, Victoria emerged as a leader in dwelling approvals by CommSec, out of which 19,590 were houses and 20,622 were apartments.
- Apart from this Melbourne’s inner city precincts experienced highest no. of dwelling approvals with a totalling of 8,043 while Melbourne’s south east remained most popular area for housing approvals, with the total of 3,327.
- Western Australia recorded the second highest number of approvals including 16,712 houses and 4,344 apartments.
On this Housing Industry of Australia senior economist Shane Garrett said, dwelling approvals in Victoria were on the rise due to a recovery in the market. “Population growth is quite substantial in Melbourne, but what also happened in Victoria and in Melbourne in particular, was that dwelling activity reached very high levels in 2010 and then declined quite considerably from about 60,000 dwellings per year to about 45,000 last year,” he explained.
As per the data, home building in Western Australia last year rose by 30% and topped the list that directly increased the market of new home builders Melbourne. In fact, according to the HIA reports, total residential building approvals in WA reached the highest monthly total in February breaking all records since 1983.