Andrew Wilson: Canberra notches up high level of residential building

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Canberra continues to add to its stock of housing with sharp increases in approvals for houses and units over the past year.

Latest ABS data reports that Canberra approved 6076 new dwellings for building over the year ending January 2017, which was a sharp increase of 1861`or 44.2 per cent higher than the 4215 approved over the previous year ending January 2016.

Approvals for new units accounted for most of the residential building activity over the past year in Canberra, with 4825 approvals recorded. This was an increase of 52.8 per cent or a remarkable 1667 higher than the 3158 approved over the same period the year before.

The January annual unit building approvals were the second highest on record and only narrowly exceeded by the 4885 approved over the calendar year 2016.

Building approvals for houses were also strong in Canberra over the year ending January, rising by 194 to 1251 which was 18.4 per cent higher than the 1057 approved over the year ending January 2016.

Near record levels of new housing in Canberra are set to be absorbed by a recent surge in migration. Latest ABS data reports net interstate and net overseas migration totalling 1045 over the September quarter 2016 for an annual sum of 2068. This is the highest annual net migration recorded since the year ending June 2015 and the second highest total since March 2013.

Net overseas migration of 989 into Canberra over the September quarter accounted for most of the total, with net interstate migration at just 56.

High levels of residential building and surging migration are a clear positive for the local economy. The ABS reports a Canberra unemployment rate of 4.6 per cent over February 2017, which is well down on the 5.4 per cent recorded over February last year.

The Canberra economy has also created 7123 jobs over the year to February – a strong increase of 3.4 per cent.

Positive Canberra news abounds.

Andrew Wilson is Domain Group chief economist.Twitter: @DocAndrewWilson