There’s life in the Melbourne construction boom yet, with the release of the Australian Bureau of Statistics (ABS) building approvals data recording a seasonally-adjusted 27.3% (2,915 unit) rise in dwelling approvals in the month of May, led by Victoria where approvals rose by 32% (1,267 units):
Victoria’s currently accounts for 36% of the nation’s dwelling approvals which, when considering the state’s 25% population share and current housing supply, presents a worrying situation for the Melbourne housing market.
Units and apartments are behind the huge surge in Victorian dwelling approvals, which reached their highest ever level in the month of May and overtook house approvals for the first ever time:
It’s a similar story at the national level, with the increase in dwelling approvals driven by units and apartments, mostly from Victoria:
Last year I wrote a post entitled Melbourne’s Miami connection, which drew comparisons between Melbourne’s construction boom and that which occurred in Miami in the mid-2000s. That article is beginning to look increasingly relevant in light of today’s data.
