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 (graph 20.10). 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.
During the first half of 1999-2000 there was a significant increase in approvals as a result of activity brought forward ahead of The New Tax System. However, in 2000 approvals declined sharply to a level below the lows of late 1990 and 1995.
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