Building Approvals - Meandering Slowly Downward

• Building approvals fell by 5.0% in April, following an increase of 3.5% in March. The considerable volatility month-to-month in the dwelling approvals data continues.

 

• For the year to April, building approvals rose 1.9%. Building approvals peaked in August 2016, but remain at an elevated level on a historical comparison. Building approvals are now 13.4% below their 2016 peak. 

 

• Building approvals are now 13.4% below their August 2016 peak. The downturn is more pronounced in the other (or multi-density) segment, which includes apartments and townhouses. Approvals for the other segment are 31.9% away from their peak while house approvals are only 2.2% away from their peak.

 

• The fall in building approvals in April was driven by Victoria, with a decline of 7.8%. Approvals increased in all other States. Western Australia led the increase (21.0%), followed by Tasmania (6.0%), NSW (5.7%), South Australia (4.2%) and Queensland (1.2%).

 

• Nationally, house prices, auction clearance rates and lending indicate housing conditions are softening, which is expected to further weigh on residential construction. Approvals have declined over the past year, suggesting residential construction will weaken further and continue to drag on economic growth.

 

 

Please see the attached report for more information.

Download.pdf Back to News