Century 21, the largest real estate sales organisation in the Asia Pacific region, believes that a spike in housing approvals over August, falling interest rates and rising capital city dwelling values suggest a housing market recovery may be well underway.
“The Australian Bureau of Statistics recently reported that in August the number of residential properties approved nationwide rose by 6.4 per cent, in seasonally adjusted terms – a significant increase on the 21.2 per cent fall recorded in July,” said Chairman and Owner of Century 21 Australasia, Charles Tarbey.
“When combined with recent interest rate cuts and dwelling value growth, Century 21 expects a busy end to the year for the residential housing market in Australia.”
The overall increase in dwelling approvals was driven largely by non-house dwellings, such as apartments and townhouses, which rose by 23 per cent, seasonally adjusted, over August. Approvals for detached houses declined by 0.5 per cent over the same period.
The value of total building approvals rose by 9.4 per cent in August, in seasonally adjusted terms, after falling for two consecutive months.
“When viewing these figures, it is important to recognise that building approvals remain historically weak and down on the year to August,” continued Charles Tarbey.
“Nevertheless, after a sustained period of turbulence in approval levels, this positive movement is pleasing to see and I am hopeful that this upward trend will continue.
“With building approvals up and RP Data-Rismark reporting that capital city dwelling values rose by 1.4 per cent over September – prior to the Reserve Bank’s latest rate cut – there are certainly positive signs for the market’s short to medium term future,” concluded Charles Tarbey.