The ABS has just released dwelling completions data for the December quarter, which registered a 2.0% seasonally-adjusted fall in the total number of dwellings completed over the quarter, with the 3.3% rise in detached house construction more than offset by a 9.9% slump in unit & apartment construction (see next chart).
The decline in dwelling completions nationally was driven by a big 10.9% fall in Victoria, where unit & apartment construction slumped by 21.3% and house construction fell by a more moderate 1.3%. The fall in Victoria more than offset increases in New South Wales and Western Australia, where completions rose by 1.6% and 16.9% respectively over the quarter (see next chart).
Victoria’s share of dwelling completions also fell significantly in the December quarter – falling from 34% to 31% – although it remains elevated overall, especially considering Victoria’s 25% population share (see next chart).
Overall completions were hovering just above the 26-year average in the December quarter, but remained fairly depressed given the circa 45% rise in Australia’s population over that time. Moreover, detached house construction remains weak, with the bulk of recent growth in construction coming from units and apartments (see next chart).
Still, despite the weak quarterly result, the outlook for dwelling construction remains bright given the strong recent uplift in approvals, which tends to lead completions by around 6 to 12 months (see next chart).
