The Australian Bureau of Statistics (ABS) has released dwelling approvals data for the month of July. At the national level, the number of dwelling approvals crashed by a seasonally adjusted 9.7% to 12,944. The overall slump in approvals was broad-based with both houses (-3.3%) and units (-18.4%) falling.
In the year to July 2019, dwelling approvals crashed by a seasonally-adjusted 28.8%, with house approvals down 16.6% and unit approvals tanking by 44.2%:
A chart showing the time series of seasonally-adjusted dwelling approvals at the national level is provided below, split-out by detached houses and units & apartments:
Dwelling approvals have crashed in trend terms, driven by units & apartments:
Since initially peaking in March 2015, dwelling approvals nationally are down by 33% in trend terms.
Approvals have fallen fast in rolling annual terms:
There were 182,756 approvals in the year to July 2019 – well below the peak of 242,231 approvals in the year to August 2016 – with most of this growth in approvals coming from units and apartments, which are still running well above the 30-year average.
The below chart shows the time-series of approvals at the state level on a trend basis, with massive busts recorded across the major markets:
As you can see, the housing construction bust is on like Donkey Kong!