Good news for Perth’s residential builders, as WA building approvals rose by nearly 7 per cent in January, seasonally adjusted. After a period of uncertainty and decline, the economy is showing signs of getting stronger and the RBA states it “should strengthen by mid 2014”. The mining boom may be over, but residential construction is getting stronger and economists expect it to boost economic growth this year (www.abc.net.au). St George economist Janu Chan stated that approvals are at their highest level since 1983 (www.abc.net.au).
The total number of loans in January for owner-occupier housing grew 15 per cent year-on-year, with no change from the December figure. The total for construction of new housing increased 23.5 per cent year-on-year (www.theadvisor.com.au ). It appears that consumer confidence has improved and people are still willing to invest in residential property.
The Australian economy is regaining strength. Gold prices hit a three-week high on Monday; rising 0.6 per cent to $US1328.30 an ounce (www.smh.com.au). The Australian dollar is also coming in strong, at 94 cents USD (15/04/2014).
Commercial development in WA is booming with upcoming developments such as Park on Swan (Doric), the Westadium (Brookfield Financial) and BGC’s Aloft hotel. Overall, the next few months are looking promising for the construction industry and the mining boom is now shifting to make way for what looks like a building boom.