The Housing Industry Association reports a decline of 28 percent in detached home activity across the Central Coast in 2022 as a result of increased multi-unit approvals.
HIA Hunter Executive Director, Craig Jennion, said the latest figures on new home approvals from the Australia Bureau of Statistics indicate that in 2022 detached dwelling approvals had decreased in both the Central Coast and the Hunter regions.
“In 2022 detached dwelling approvals decreased 18 percent in the Hunter and 28 percent on the Central Coast compared to the 2021 calendar year,” he said.
“Accounting for 66.8 percent of all approvals in the Hunter detached homes remained the preference for home buyers, despite the decline.
“However, on the Central Coast they fell to 48.8 percent as a result of increased multi-unit approvals,” Jennion said.
In 2022 a total of 3,966 new dwellings were approved in the Hunter, a fall of 23 percent compared to the previous year.
Dissimilarly, 1,603 total approvals on the Central Coast ensured the region duplicated the number of residential homes approved for construction compared to 2021.
“This was a result of elevated activity in the south of the municipality,” Jennion said.
“Much of the heavy lifting for the residential sector continues to occur in the local government areas of Central Coast, Lake Macquarie and Maitland.
“These top three locations for approvals accounting for 65.4 percent of total approvals.
“The value of approved major renovations and alterations diverged, with Hunter approvals decreasing by 13 percent to $276.2M and the Central Coast increasing by six percent to $157.5M.
“Like detached and multi-unit dwelling approvals, all growth on the Central Coast occurred in the south of the municipality, where the total value increased 12 percent”.
“The declines, particularly those in the latter half of 2022, were expected following the end of the HomeBuilder grant and a cooling market that was influenced by increases in the cost of construction, triggered by material and labour shortages.
“Looking ahead, residential building activity will remain strong on the back of the large pipeline of work approved over the past two years, however, the impact of increasing interest rates will keep demand for new homes at a level below that observed in recent years.
“Pleasingly, the relative affordability advantages the region has over other locations will support continued demand for new homes, ensuring the important contribution residential construction provides the local economy continues in the near future,” Jennion said.
Source:
Housing Industry Association