Jobless rate falls as house and unit building boom boosts Canberra economy

The robust Canberra housing market is fuelling ongoing strong demand for new residences with increased construction also contributing to an improving local economy.

Latest ABS data for June reveals that 147 houses were approved for building over the month, which is the highest monthly total for the year so far and the highest recorded since December 2014.

Canberra has approved 597 houses for building over the first six months of this year, which is 40 more or an increase of 7.2 per cent compared to the 557 approved over the same period last year.

Although house approvals surged over the month, the typically volatile unit approval series fell sharply to the lowest result of the year so far at 101 – well down on the 538 approved over May.

Despite the monthly fall, Canberra has approved 2146 units for building over the first six months of this year which is a significant increase of 25.5 per cent or 436 more than the 1710 approved over the same period last. This year’s unit total is the highest ever recorded in Canberra  for this period.

Over the year ending June, Canberra approved residential construction to the value of $1.34 billion.

Canberra’s home building boom is predictably feeding into the local economy with the jobless rate falling and employment rising.

The ABS reports that the ACT trend unemployment rate fell to 3.6 per cent over July compared to the 3.7 per cent June figure. July’s result was the equal lowest reported by the ACT since the 3.4 per cent of January 2011.

Employment is also increasing in the ACT with the July workforce increasing by 4260 compared to July last year. 

Dr Andrew Wilson is Domain Group chief economist Twitter@DocAndrewWilson