Brisbane’s number of unit buildings increased more than half over the past 12 months and considered to have a significant shift in comparison to 10 years ago.
RECORD home unit building approvals are driving an increase in the total number of dwellings across Queensland.
The number of home unit approvals has more than doubled in the past decade. This surge has been driven by activity across Brisbane, the Gold Coast and Sunshine Coast.
The figures come on the back of data from the Australian Bureau of Statistics showing home loan demand remains strong, with a 1.2% jump in the number of dwelling commitments approved throughout February.
In Brisbane the number of unit building approvals reached 58% of total dwelling approvals over the past 12 months, while on the Gold Coast the figure was 55%, and on the Sunshine Coast it was 38%.
The statewide figure is 47% of the total approvals over the past 12 months.
Master Builders deputy executive director Paul Bidwell said this was a significant shift in comparison to 10 years ago when the number of unit building approvals was only 29% of total approvals in Queensland.
“South-East Queensland is going gang-busters, even though the regions are languishing, and that is in line with what our members are saying,” Mr Bidwell said.
“The increase in the unit figures can be attributed to the demand in investor sales and a desire for a lifestyle close to shops, transport and other amenities.”
The regional dwelling approvals for February 2015 show Queensland-wide approvals rose by 12.6% on the previous year.
However, it is the regional figures that tell the true story of building activity.
Brisbane, Gold Coast and Sunshine Coast all continue their strong run, with the Gold Coast recording an exceptional 59% increase over the past 12 months, Brisbane 20.3% and the Sunshine Coast 21.7%.
February also brought a 23.1% increase on the Sunshine Coast over the previous month.
That tends to indicate the fall in the $A compared to the $US from above $1 to high the 70 cent range as being a benefit to the international tourist market and part of the reason why south-east Queensland as well as Cairns is travelling well. The Darling Downs, Wide Bay and North Queensland which were performing strongly are now flat as the effects of the reduction in mining investment continue to spread.
CommSec chief economist Craig James said while financial approvals were up across Australia, the number was skewed by people refinancing to take advantage of the low interest rates.
The value of investment loans fell by 3.5% in February.
Mr James said it seemed that potential home investors were taking heed of the Reserve Bank’s warnings on over-leveraging in a low interest rate environment.
If this continue, Brisbane home loan demand will remain strong.