New figures show the number of homes approved for construction across Victoria dropped 4.6 per cent in July, but remain well ahead of the same time last year.

Seasonally adjusted, 4247 homes were approved throughout the month. While this was around 200 fewer than in June, it was about 200 more than the same time last year.

“Approvals were climbing in the second half of last year and the market is slightly correcting itself after that,” said Master Builders CEO, Radley de Silva.

“Nonetheless, a solid number of new homes have been given the green light, which is good news for our sector.

“Every month so far this year has produced stronger home approval figures than the corresponding month of 2013.

“Record low interest rates are stimulating demand for more housing and local property prices look to have grown significantly over winter.”

Source: ABS 8731.0

For the ninth month in a row, Victoria led the trend for home building approvals across the nation, squeezing ahead of New South Wales by 250 new homes.

“Victoria is again the home building capital of Australia, but the trend for approvals is pointing down and highlights the need for our state and national politicians to do more to encourage activity in our sector,” Mr de Silva said.

“That’s why Master Builders has backed moves by the State Government to boost first home buyer incentives.”

Source: ABS 8731.0

Detached houses continued to lead the way in approvals throughout Victoria over multi-units such as apartments and townhouses. House approvals are now 21.0 per cent above the same time last year, but still fell by 3.9 per cent for the month.

In contrast, multi-unit home approvals dropped 5.7 per cent for the month and are now 12.7 per cent lower than the same time last year.

Source: ABS 8731.0

A total of $1.34 billion worth of residential building works, both for new homes and renovations, were given the go ahead in July, which seasonally adjusted was $119 million more than the July of last year.