APPROVALS for new units in Newcastle sky rocketed in 2023, with an increase of almost 160 per cent recorded in the year to December.
According to the Housing Industry Association's (HIA) analysis of the latest ABS figures, a total of 1048 new units were approved in Newcastle last year, up from 404 in 2022.
Maitland also recorded a surge in new unit approvals in 2023, with a rise of 103.83 per cent (373 approvals).
However, overall building activity fell across the Hunter in 2023.
"In 2023 total dwelling approvals in the Hunter fell 7.4 per cent compared to the 2022 calendar year," HIA Hunter executive director Craig Jennion said.
"This is in contrast to all states and territories that saw a greater decline in the 2023 calendar year.
"Nationally total approvals fell 15.4 per cent, while in NSW approvals fell 17.7 per cent."
Regionally, Newcastle was the biggest mover with total dwelling (house and unit) approvals increasing by 114 per cent.
House approvals increased 15.96 per cent while multi-unit approvals increased 159.41 per cent in the 12 months to December 2023.
Mr Jennion said strong approvals in the December quarter 2023 assisted this result.
Meanwhile, the value of approved major renovations and alterations increased in 2023, with the Hunter region's approvals increasing by 10.7 per cent to $306.2 million.
There were a total of 4,786 building approvals across the Hunter in 2023 and 1,586 on the Central Coast, according to ABS data.
Combined, this was 6.3 per cent weaker than in 2022, 15.2 per cent lower than 2021 and 12 per cent lower than the pre-Covid year of 2018.
"In the Hunter, detached homes remained the preference for home buyers, accounting for 55.6 per cent of all approvals," he said.
"This is despite a 17.7 per cent increase in multi-unit approvals.
"Much of the heavy lifting for the residential sector continues to occur in the statistical areas of Central Coast, Newcastle, Lake Macquarie, Maitland and Cessnock.
"These top locations for approvals accounting for 89.5 per cent of total approvals."
Mr Jennion said residential building activity would remain strong on the back of the pipeline of work approved over the past two years.
However, he said the impact of increases in interest rates and construction costs had impacted consumer confidence for detached dwellings.
As a result, Mr Jennion said further growth in multi-unit approvals was expected in the coming years supported by strong intrastate migration.
"Pleasingly, the relative affordability advantages the region has over other locations will support continued demand for new homes, ensuring the important contribution residential construction provides the local economy continues," he said.
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