Canberra apartment building in growth spurt: Andrew Wilson

Apartment construction in Canberra has surged this year, providing more impetus to a local economy showing early signs of a revival.

Latest ABS data reveals that 1350 units were approved for building over the March quarter, a significant increase of 1009 over the 341 approved over the same period last year.

There have been 4154 apartments approved for building over the year ending March this year, well ahead of the 1764 approved over the year ending March 2015.

Over the past year the North Canberra region has approved the most apartments, with 687, followed by Tuggeranong with 550, Gungahlin 479, South Canberra 420 and Woden 406.

Although apartment construction is booming in Canberra, house building levels are falling. Approvals were given for 201 houses over the March quarter, which was 41 fewer than the 242 approved over the March quarter last year.

Over the past year Canberra has approved just 1012 houses for construction, well down on the 1502 approved over the year ending March 2015. The underlying long-term trend for houses approvals in Canberra continues to decline sharply.

Although house building is clearly in decline, the apartment building boom will continue to fuel rising economic activity. Latest ABS data reported that the ACT jobless rate fell to 4.1 per cent over April – the lowest monthly result recorded since May 2014 nearly  two years ago.

Over April 213,587 persons were reported employed in Canberra – an increase of 1,962 over the total for April last year. 

Dr Andrew Wilson is Domain chief economist. Twitter: @DocAndrewWilson – My Property, 2UE, Fridays, 2-3pm, Saturdays, 12.30-1pm.