Dwelling approvals are closely tied to the health of the building sector, as well as the wider economy, with the number of dwelling units approved in a month a leading indicator of economic activity.
It's good news, then, that the Housing Industry Association (HIA) has found the number of new dwelling approvals to have strengthened in May. What's more, they continue to remain at high levels. This is good news for property investors in Adelaide looking into new residential developments.
The HIA found the total number of new dwelling approvals to have risen by 2.4 per cent in May this year, reaching 19,414 (seasonally adjusted). This is even further improvement upon the 18,964 recorded in April.
HIA Senior Economist Shane Garrett noted that May saw dwelling approvals reach the "third highest monthly total on record".
"While it is positive to see improved levels of approvals, the distribution of growth was uneven with multi-units increasing significantly during the month and detached house approvals falling back," he said.
In the latter half of this year, Mr Garrett expects a strong flow of new home building across the country, and it's going to need to remain as such if demand for housing is to be met. This pipeline of new homes still faces issues, however.
Mr Garrett noted that policymakers need to address the current bottlenecks that cause issues in the planning system. What's more, he also stated how the excessive fees and charges must be taken into consideration.
The Australian Bureau of Statistics noted that the total number of dwelling units approved dropped by 0.1 per cent in May, following an 11 month climb. It's likely the number of approvals will remain high as the year progresses.
Whether you require assistance when it comes to property management or you're looking to acquire a new home, get in touch with the team here at Ray White.