Data from the ABS for residential building approvals in February confirms that the surge continues apace. Across the nation approvals are now up 20.1% y/y after a month-on-month bounce of 21.6%. House approvals are driving the national surge (up 57.9% y/y) while unit approvals remain 26.3% below their level of a year ago.
If we consider the 12 month total then we see a 9.2% increase compared to the 12 months to Feb 2020.
Queensland is doing even better. Total approvals were up 40.5% m/m (after a large drop in Jan) which leaves us 61.5% above the level a year ago. House approvals are up 55.2% y/y while units are also up (+79.6%). For the 12 months this equates to a 13.6% increase over the same period a year ago.
All of this confirms what has been the case for some time now; low interest rates and Govt support packages are fueling a boom in housing construction, and points to a healthy outlook for the construction sector in coming quarters.