Apartment boom continues to support local economies

The recent boom in inner city apartments continues at near record-breaking pace according to the latest data from the ABS.

5093 units were approved for building in Australia’s capital cities over December which is the second highest monthly total on record behind only the 5970 recorded over the previous July.

December’s results were 10.1 percent higher than that recorded over November and just above the 5062 reported over December the previous year.

Australia’s capital cities approved a record 51,106 apartments for construction over 2015 which was an increase of 12,374 or a rise of 31.9 percent compared to that recorded over 2014.

All capital cities recorded significant increases in new apartment building approvals over 2015 with the exception of the mining capitals Darwin and Perth.

Sydney took over the mantle from Melbourne as the leading capital for apartment development with 35,538 approvals recorded over 2015 compared to 33,023.  Sydney’s 2015 total was an increase of 38.9 percent compared to that recorded over 2014.  Melbourne unit approvals by comparison were 19.7 percent higher with the year on year comparisons.

The growth in Brisbane apartment approvals however dwarfed both that recorded by Sydney and Melbourne with the northern capital approving a local record of 19.992 units over 2015.  This was a remarkable 65.7 percent higher or an increase of 7,928 over the 12,064 approved the previous year.

Adelaide and Canberra also recorded significant increases in apartment development over 2015 compared to the previous year.

The unprecedented growth in apartment development over 2015 is a significant contributor to improved economic activity and with record numbers of units in the pipeline for construction will continue to underpin Australia’s economic revival.

Dr Andrew Wilson is Domain Group Chief Economist Twitter@DocAndrewWilson