Home building across the Central Coast cooled slightly in 2023, according to the Housing Industry Association (HIA).
HIA Hunter Executive Director Craig Jennion said latest ABS figures showed the total dwelling approvals fell by 2.9 per cent compared to the 2022 calendar year on the Central Coast.
But the Coast and the Hunter fared better than the rest of the nation, with total approvals Australia-wide falling by 15.4 per cent and approvals in NSW falling by 17.7 per cent.
“There was a total of 4,786 building approvals across the Hunter in 2023 and 1,586 on the Central Coast,” Jennion said.
“Combined this is 6.3 per cent weaker than in 2022, and 15.2 per cent lower than 2021.
“It is 12 per cent lower than the pre CPOVID year of 2018.
“In the Hunter, detached homes remained the preference for home buyers, accounting for 55.6 per cent of all approvals.
“This is despite a 17.7 per cent increase in multi-unit approvals.
“On the Central Coast the mix was more even, with multi-unit approvals remaining a slight preference, accounting for 50.2 percent of all approvals.
“Much of the heavy lifting for the residential sector continues to occur in the statistical areas of Central Coast, Newcastle, Lake Macquarie, Maitland and Cessnock.
“These top locations for approvals account for 89.5 per cent of total approvals.”
Jennion said the value of approved major renovations and alterations increased in 2023, with Hunter approvals increasing by 10.7 per cent to $306.2M and the Central Coast increasing by 2.9 per cent to $165.2M.
“Looking ahead, residential building activity will remain strong on the back of the pipeline of work approved over the past two years, however the impact of increases in interest rates and construction costs has impacted consumer confidence for detached dwellings,” he said.
“As a result, further growth in multi-unit approvals is expected in the coming years supported by strong intrastate migration.
“Pleasingly, the relative affordability advantage the region has over other locations will support continued demand for new homes, ensuring the important contribution residential construction provides the local economy continues.”