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Building approvals rise in 2006-07

New building approvals rose in Australia over the past year, but still looking to be insufficient for the increasing population fueled by incoming migration.This may be particularly true in Sydney, where the most migrants arrive, so it could lead to a shortage of supply in this improving market.

Building approvals rose in both number and value in the past year, according to figures released this week by the Australian Bureau of Statistics (ABS).

The total number of dwelling units approved in 2006-07 was 152,790, an increase of 1.3 per cent from the previous year.

Nationally, the number of house approvals rose 1.6 per cent from the previous year while other dwellings rose just 0.7 per cent.

New South Wales (down by 6.1 per cent), South Australia (down 5.4 per cent) and Western Australia (down 3.0 per cent) were the only states to show falls in total dwelling units approved.

New South Wales recorded falls in both houses and other dwellings. The fall in South Australia was driven by other dwellings (a drop of 29.9 per cent) where as in Western Australia it was driven by houses (a fall of 10.2 per cent).

The biggest rises in total dwellings approved were shown by the Australian Capital Territory, which rose 22.7 per cent and Queensland (up 8.7 per cent).

The value of total building approved in 2006-07 was $66,762.4m, a rise of 9.1 per cent from the previous year, with both residential and non-residential building approvals showing rises.

The value of total building approved fell in South Australia, the Northern Territory and the Australian Capital Territory.

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