Illawarra building approvals are the highest they’ve been in five years according to new Bureau of Statistics data.
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The ABS also the value of building approvals for the region from January to April had soared to $314 million, a 38 per cent jump from the same time last year.
UOW Professor of Economics Alex Frino said the growth in property development in the area was driven by low interest rates and high house price growth and signalled a health economy.
“The high house price growth is spurring property development with developers hoping to cash in on the continued appreciation in house prices. At the same time, our historically low interest rates make borrowing money for the purposes of building houses very attractive,” Professor Frino said.
“Buildings approved for construction today will be carried out over the next 2 to 3 years thereby creating jobs and economic growth.
“This data suggests that the boom in the economy and downward pressure on unemployment that we have seen over the last few years is set to continue at least for the next 24 to 36 months.”