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New dwelling approvals up 5 per cent in the ACT

By Ben Faulks

Garnering a good understanding of the health of the property market is an important first step in purchasing real estate in Belconnen. One factor that may indicate whether it's a prudent time to buy or not is the current approval rate of new buildings. So, how is ACT faring when it comes to this important metric?

Approval rates in ACT outpace national average 

The Australian property market got off to a slow start in 2016, but home buyers and sellers alike will be glad to hear that the industry has since made something of a recovery. Between January and February of this year, the total number of dwelling units approved for construction increased by 3.1 per cent, according to figures collated by the Australian Bureau of Statistics.

Most of this growth was centred around apartment developments, with this type of property seeing a 7.6 per cent growth spurt across the first two months of the year. 

According to the Housing Industry Association (HIA), the ACT enjoyed more than its fair share of the growth, with approvals increasing by 5 per cent within this timeframe. 

Is this rate of growth sustainable for 2016?

While the newfound strength in the country's property market comes as good news, HIA Senior Economist Shane Garrett cautioned that the growth will probably level out in the weeks and months to come.

"The monthly lift in approvals activity during February is welcome but it seems increasingly likely that approvals peaked late last year and that the volume of new home building activity is set to ease as 2016 progresses," explained Mr Garrett.

If you're looking to capitalise on market conditions, be sure to enlist the services of the Ray White team and find out how we can help you buy or sell property in Belconnen.

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