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Housing approvals saw a mixed picture across the country in March, but South Australia continued to hold steady.
Data from the Australian Bureau of Statistics (ABS) showed dwelling approvals were unchanged between March and February, but one group suggested activity is at “relatively reasonable levels”.
The Housing Industry Association (HIA) highlighted that the state remains one of the most stable parts of the country in which to invest, potentially giving people incentive to seek real estate tips.
ABS figures show detached house approvals declined 1.3 per cent over the course of the month, while multi-unit dwellings increased 7.9 per cent during the same period.
HIA analysis showed the total number of detached dwelling approvals was 38 per cent higher than during the same period of 2013 when they were at a decade low.
Meanwhile, multi-unit approvals in the three months to March this year were 10.8 per cent below the figure recorded just 12 months ago.
The HIA believes this is down to a combination of record-low interest rates and stronger incentives for property purchases available throughout South Australia.
The official cash rate has now been at an all-time low of 2.5 per cent since August 2013 and latest comments from the Reserve Bank of Australia (RBA) suggest this isn’t likely to change any time soon.
At its May 6 meeting, the RBA board acknowledged that while there has been some progress made in the economy, there are still certain areas where improvements can still be made.
RBA Governor Glenn Stevens commented: “Monetary policy is appropriately configured to foster sustainable growth in demand and inflation outcomes consistent with the target.
“On present indications, the most prudent course is likely to be a period of stability in interest rates.”
Analysts believe that while this situation is benefiting buyers at the moment, there is a chance it might not be around for long.
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