Top Australian regions for home loan approvals says Dominic Lambrinos

Could one of these be your new hometown?

Newly approved housing supply has moved to record heights, with 214,331 dwelling approvals recorded nationally in the past year. Units were particularly popular, accounting for 45.9% of all approvals, also a record.

It’s really amazing to see what areas are becoming popular for approvals because that tells us something about migration and new breeding ground for business and property. This spike in approvals has spawned from insanely low interest rates and a huge demand from the investment segment of the market.

Across all the approvals more than 50% of them for the capital cities (except Adelaide, Perth and Hobart) and more than 50% of them were for units. Data pulled for the 2011 census shows that units are twice as likely to be rented out versus homes making this a highly desirable situation for people looking to invest in unit properties.

So just where are Aussies building new homes? For houses, the region with the highest number of approvals over the financial year to-date was South East Melbourne with 4,874 approvals.Looking at unit approvals specifically, Inner Melbourne is showing the highest number of approvals coming in at 12,516.

Just to put this number in perspective the second highest ranking city for approvals is Inner Brisbane which came in at 5,808 approvals. So we can see the major difference between the locations telling us that Melbourne is trending up.

The top 20 list shows three NSW regions, six regions from Victoria, five regions from Queensland, one SA region and five regions from WA.

Constructions trends are showing that activity will remain high for the next few years but this leads to another worry which is getting enough pre-sales of units. Banks are now tightening their practices as far as lending is concerned so it may be tough for individuals to get approvals for pre-sales.

If you’re looking to get an approval it’s definitely a good idea to look into these cities with high approval rates so you can find yourself a new hometown!