Building Approvals Bouncing Back

Building approvals have bounced back and pushed the total number of residential dwellings approved nationally to 233,180 over the year on a seasonal basis.

Property Council Executive Director Residential Nick Proud said the turnaround in October was welcome news, with the strong results delivering important gains for Australia's economy.

"Property is Australia's largest industry, contributing more to GDP than any other and strong residential construction activity helps underpin the 1.1 million jobs the industry creates," Mr Proud said.

"It is critically important that we maintain a solid forward pipeline of new housing construction to consolidate the gains new supply has made towards improvements in housing affordability.

"The 19,652 building approvals recorded in October are heading back towards peak territory of 20,000 recorded earlier this year.

"The 3.9 per cent month-on-month increase in dwelling approvals nationally was led by Victoria, which has now hit the 70,000 approvals in 12 months mark for the first time.

"A big jump in South Australia, up 23.4 per cent for the month is particularly welcome news in terms of potential job creation in that state and puts approvals over the 10 year average.

"Queensland on the other hand saw the largest drop in dwellings approved by volume from the previous month with 28.7 per cent fewer homes approved in October.

"It is clear that the larger states are still driving national activity, with benefits flowing through to the broader economy. Implementing national efficiencies for housing supply to support completions across all states will maximise the economic return from this heightening activity.

"As we head into 2016 there is a need to better leverage the strongest residential construction activity ever recorded and consider new ways to support supply to meet the housing needs of all Australians."