BUILDING approval figures show momentum in Australia’s housing market is growing, while the ACT market is in decline, according to the Australian Bureau of Statistics. 

In the ACT, according to ABS building approval data released yesterday (October 31), total building work approved decreased by 6.7 per cent, commercial building work declined by 12.9 per cent and total new dwelling approval has declined by 22.4 per cent over the past 12 months.

Nationally, though, building approvals are on the rise, and during September, building approvals for new apartments increased by 16.1 per cent and detached house approvals rose by 2.7 per cent. After their strongest ever result during August, commercial building approvals returned to normal levels in September but remained 6.3 per cent higher over the past 12 months.

Master Builders ACT CEO Michael Hopkins says the fact that ACT’s building approvals are declining while the rest of Australia is growing can be explained by local factors.

“The 2019-20 ACT Budget forecasted a gradual decline in capital works funding from close to $1 billion in 2016-17 to $581 million in 2022-23, leaving local contractors with the capacity to deliver more education, health and other commercial infrastructure,” he says.

“Residential approvals are being impacted by a range of factors including delays in the development approval system, increasing building taxes, and complex planning regulations.

“With the ACT’s population growing faster than the Australian average, it is vital to the ACT’s economic future that funding for infrastructure and capital works increases, the planning system be streamlined, and the regulatory and tax settings support local and family businesses.”