BUILDING APPROVAL TRENDS – STATE AND TERRITORY

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BUILDING APPROVAL TRENDS – STATE AND TERRITORY

With an ageing labour force, the physical nature of work, the ongoing demand for new housing, the building and construction industry is more vulnerable to skills shortages than many other industry sectors

Building approval data is notoriously volatile, but in trend terms the number of permits issued are down about 22 per cent on a year ago. Approvals in February rose in NSW and WA, while falling or remaining flat in other states and territories. Falling house prices and declining lot sales point to ongoing weakness this year.

Lending to owner-occupiers purchasing or funding the construction of new homes in the three months to March 2019 fell in all states, when compared with the previous quarter, with NSW down by 23.6 per cent, Victoria by 18.8 per cent, Western Australia by 17.8 per cent, Queensland by 15.6 per cent, Tasmania by 12.7 per cent and South Australia by 10.1 per cent.

The impact of a slowing economy and the continued credit squeeze will continue to slow home building activity, regardless of the timing of both interest rate cuts and withdrawal of lending restrictions.

Due to an ageing labour force, the physical nature of work, the ongoing demand for new housing, building and construction industry is more vulnerable to skills shortages than many other industry sectors.

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Other incentives like tax breaks and start up grants should be introduced to attract more young Australians to enter into the building and construction industry. Equally host apprentice employers should also enjoy added benefits to encourage growth and mentorship of trade skills that are lacking in our industry. It is widely acknowledged that tradesman operate businesses rather than being employed due to the nature of the industry yet and apprentice must be employed. That creates a huge burden for qualified and experienced tradesman in their own small business to take on the responsibilities associated with employment. This is where incentives and tax breaks could play a part in nurturing the Australian skill shortages in the building and construction industry.

DWELLING UNITS APPROVED STATE TRENDS

NEW SOUTH WALES

  • The trend estimate for total number of dwelling units approved in New South Wales rose 0.8% in March. The trend estimate for the number of private sector houses fell 3.4% in March.

VICTORIA

  • The trend estimate for total number of dwelling units approved in Victoria fell 3.5% in March. The trend estimate for the number of private sector houses fell 1.8% in March.

QUEENSLAND

  • The trend estimate for total number of dwelling units approved in Queensland fell 1.4% in March. The trend estimate for the number of private sector houses fell 0.9% in March.

SOUTH AUSTRALIA

  • The trend estimate for total number of dwelling units approved in South Australia rose 0.4% in March. The trend estimate for the number of private sector houses rose 0.9% in March.

WESTERN AUSTRALIA

  • The trend estimate for total number of dwelling units approved in Western Australia rose 3.8% in March. The trend estimate for the number of private sector houses rose 1.0% in March.

Sourced Australian Bureau of Statistics.

LICENSE2BUILD CAN HELP

Are you in the building and construction industry and need a contractor’s licence? Have you gained all of your skills and experience as a contractor rather than as an apprentice or an employee of a builder?

License2Build can help you navigate through all of the requirements. Call License2Build now to discuss your licensing requirements.