Residential building involves the construction of dwelling units, which comprise new houses, new other residential buildings (flats, apartments, villa units, townhouses, duplexes, etc.), and dwellings created as part of alterations and additions to existing buildings (including conversions to dwelling units) and as part of the construction of non-residential buildings. Building approvals are a key indicator of future activity, as nearly all building activity must be approved by local and/or other authorities.
The trend in total dwelling unit approvals grew for three and half years from February 1991, peaking in July 1994 (see graph 20.7). The trend then declined until December 1995, to a level almost 40% below the July 1994 peak. The trend for dwelling units approved grew steadily between December 1995 and June 1996 prior to strong growth until April 1998. From mid 1998 until early 1999 the number of approvals declined.
Activity brought forward ahead of The New Tax System created the sharp increase and decrease experienced between early 1999 and mid to late 2000. The FHOG was a driver behind the accelerated increase of the number of houses approved to November 2001.
20.7 DWELLING UNITS APPROVED: Trend estimates
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