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Recently released data from the Australian Bureau of Statistics (ABS) has shown another rise for building approvals across the country during October.
The ABS recorded a 1.9 per cent rise for the month in trend terms, with this figure growing steadily for 22 consecutive months.
In New South Wales, building approvals have been tracking at a strong pace for the last 12 months. Planning and Infrastructure Minister Brad Hazzard stated in a December 2 press release there has been a total of 44,268 houses approved in the 12 months to October 2013 - the highest level since 2004.
"NSW continues to outperform the other states - which is great news for homebuyers and shows that business and consumer confidence is returning to the state," said Mr Hazzard.
More houses built in the state is a positive sign for the real estate market, as a rise in housing stock can help to ease price growth and maintain a good level of affordability for buyers.
Interestingly, a trend that has been spotted in recent months in New South Wales is the increasing popularity of approved apartments.
In New South Wales, the trend estimate for the number of dwelling units rose by 1.3 per cent, after rising for 21 months. On the other hand, detached houses experienced a slight fall of 0.2 per cent, after rising for 18 months.
According to Urban Taskforce, these growing figures for the number of dwelling units approved may show a shift in consumer preference for urban apartment living.
"Apartment approvals in October were 2,620 while house approvals were only 1,684 for NSW," said Urban Taskforce Chief Executive Chris Johnson.
"The Sydney apartment market is growing dramatically according to the latest figures and our stalled planning reforms must not slow down this momentum."
Mr Johnson noted most of the apartments that were approved were located in Sydney's inner suburbs, showing the popularity of living closer to urban centres and the city CBD.
However, Mr Johnson explained the rise in approval figures over the last few months could be due to low interest rates, the expectation of a better planning system and a major supply shortage in NSW.
As the state is expected to see a significant population boom in the oncoming years it's important there is enough housing available to accommodate an influx of residents.
"The planning system must support the dramatic increase in consumer preferences for urban living in apartments," explained Mr Johnson.
