The ABS yesterday released dwelling construction data for the March quarter of 2018, which recorded increases in both dwelling commencements and completions driven by Melbourne and Sydney apartments.
According to the ABS, the number of dwelling commencements rose by a seasonally-adjusted 5.2% over the March quarter and were up 10% over the year. Detached house commencements rose by 3.0% over the quarter and by 13% over the year, whereas unit commencements rose by 8.8% over the quarter and by 7% over the year:
As shown above, annual house commencements ran moderately above the long-term average in the March quarter, whereas apartment commencements continue to boom. However, the latter has clearly retraced.
At the state level, the quarterly fall in commencements was driven overwhelmingly by VIC, where commencements rocketed 32.1% over the quarter (driven by a 65% surge in apartment commencements):
Actual dwelling completions (which lag commencements) fell 1.2% over the December quarter, and were down 12.2% over the year. Detached house completions fell by 2.5% over the quarter and by 2.9% over the year, whereas apartment completions rose by 0.3% over the quarter but fell by 21.0% over the year:
Again, annual house completions are running moderately above their long-run average, whereas apartment completions are running way above average. However, both are now falling.
At the state level, the overall quarterly lift in completions was driven overwhelmingly by NSW (+37%):
Next week, I will update the data plotting dwelling construction (approvals, commencements and completions) against population growth.
