New South Wales is expected record strong approval figures this year as construction work continues to boom, according to the latest report from the Housing Industry Association (HIA).

Recent figures from the Australian Bureau of Statistics show robust approval figures for the first quarter of the year in New South Wales, which hit 26%.

"We anticipate a very strong year for building work in NSW this year, and into 2022, with the strongest number of detached housing starts since 2017," said David Barre, executive director of HIA. "The record volume of work will see the industry absorb workers from across the economy."

Renovation approvals in the state also increased over the quarter, up by 32.9% from last year.

"There is a record volume of approvals for renovation work in NSW. This is consistent with the results in more timely leading indicators such as HIA’s New Home Sales Report following the announcement of HomeBuilder," Barre said.

While multi-unit approvals finished March on a strong note, the segment's volatility still showed when quarterly figures are considered. Over the quarter, multi-unit approvals in the state went down by 1.2% from last year. Still, the rise in approvals for town houses and high-rise apartments helped the segment report healthy gains in March.

New South Wales is among the states that recorded robust growth in detached dwelling approvals over the quarter. Overall, approval for the houses increased by 54.2% across Australia, led by the 154.8% growth in Western Australia and the 80.3% increase in South Australia.

Approvals for detached housing also went up in Queensland (50.7%) and Victoria (36.1%).

“We anticipate a record volume of building work will commence this year, and into 2022, with more than 130,000 new detached homes to commence construction,” said Nick Ward, senior economist at HIA.