The number of residential building projects being given the green light fell in November – that’s the eighth month in a row a decline was registered. However, rather than give cause for concern, the Housing Industry Association (HIA) has suggested the results might not be alarming as they first appear.
According to the Australian Bureau of Statistics (ABS), dwelling approvals were down 1.9 per cent month on month. Some parts of the country were worse affected than others, with New South Wales witnessing a decline of 2.8 per cent.
There was also a fall in the value of dwelling approvals, down 0.8 per cent in November. So not only are fewer properties being constructed, but the amount developers are paying for them is also in decline.
HIA economist Geordan Murray explained that while the results are disappointing for real estate in Allawah and other parts of the country, they’re less concerning when assessed in a wider context.
“While the large volume of work that remains to be done on projects currently in the pipeline will sustain a high level of building activity throughout the first half of 2016, the latter part of the year appears set to take a step back from the record levels of activity seen in 2015,” said Mr Murray.
Moving forward, the next step is to make sure building activity can be sustained. Having said this, the success of the wider economy can’t be entirely reliant on construction – other sectors need to pick up the pace if future success is to be guaranteed.
For more information on Allawah property and other nearby areas of Sydney, get in touch with the team at Ray White Carlton. With our expertise, we can help you find a home that suits your lifestyle.