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Despite a slight lessening in the number of residential property approvals in December 2013, the end of the year concluded 12 months of a strong performance.
Figures from the Australian Bureau of Statistics (ABS) showed that over December 2013, national dwelling approvals increased by 1.5 per cent in trend terms, after rising for a solid 24 months.
Some of the strongest areas for approvals were Queensland (3.8 per cent), South Australia (3.5 per cent) and Victoria (2.9 per cent), which could suggest many options for real estate buyers in these areas over the coming months.
On the other end of the spectrum, falls in approvals were recorded in Australian Capital Territory (2.5 per cent), Tasmania (3.9 per cent) and the Northern Territory (15.8 per cent).
At the same time, the total number of buildings approved increased in value by 3.1 per cent in trend terms. This figure has been rising for 23 months.
Commenting on the release of the statistics, Housing Industry Association (HIA) Senior Economist Shane Garrett said 2013 was the first year of "significant expansion since 2010", after approvals rose by 15.7 per cent in seasonally adjusted terms over 12 months.
Mr Garrett noted the planning process is "moving far too slowly for a nation of over 23 million", so more needs to be done to ensure that housing approvals stay strong and rise even further.
"Housing activity has much to offer in terms of supporting economic activity and employment as we face into a period of transition," Mr Garrett explained.
Apartment approvals strong in NSW
Interestingly, units and apartments have seen a large rise in approvals in New South Wales. This could suggest a preference for these types of dwellings by homebuyers.
Urban Taskforce Chief Executive Chris Johnson commented on this trend and said the activity could indicate a "continual shift towards urban living fuelled by low interest rates and off shore investments".
"Apartment approvals continue to move solidly upwards in NSW," Mr Johnson said in a February 3 statement.
"The apartment approval boom does not necessarily mean that they will all be built in the near future. A number of very big projects are going through the planning system that will lead to construction over many years."
However, Mr Johnson explained that the large increases in prices for real estate in Sydney have attracted investors, but the price activity has stemmed from a shortage in housing supply.
