Demand for detached homes remained strong six months after the HomeBuilder stimulus ended in March.

Figures from the Australian Bureau of Statistics show that approvals for detached homes rose 15.5% in the three months to September compared to the same quarter last year.

Housing Industry Association (HIA) economist Tim Devitt said the quarterly gains in detached housing approvals point to a healthy pipeline of construction work on the ground through the end of next year.

“Leading indicators, including HIA’s New Home Sales data, suggest the detached market remains robust despite lockdowns,” he said.

In fact, sales in the same quarter — although not as strong as last year when HomeBuilder demand was at its peak — were still 7.4% higher than in 2019.

“These sales will flow into approval data in the coming months and will continue to create employment through the second half of 2022,” said Mr. Devitt.

Improving trend for apartments

Condominium approvals also rose during the period, up 34.3% from last year.

Devitt said apartment approvals have increased since last year, led by New South Wales and, to a lesser extent, Queensland and Western Australia.

“This suggests that investors are looking through the haze of the pandemic to a better outlook on the other side,” he said.

In addition, there is also increased activity in medium-density housing, which could indicate that this market is also benefiting from the shift in preferences towards lower-density housing.

The price increases in the detached housing segment may also contribute to the popularity of medium-sized homes.

“As Australians spend more time at home and accumulate a significant amount of savings, an increase in demand for larger living spaces is not surprising,” said Mr Devitt.

Photo by Harmen Jelle van Mourik on Unsplash.

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