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The latest dwelling approvals data from the ABS shows that unit & apartment approvals are running 54% below their June 2016 peak, after collapsing by 31% over the past year alone:
The situation is equally dire for high-rise approvals, which have collapsed across the three major markets, down by 54% (NSW), 58% (VIC) and 70% (QLD) from their respective peaks in rolling annual terms:
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Not surprisingly, BIS Oxford Economics has projected that high-rise apartment completions won’t bottom-out until 2021-22, with Sydney and Melbourne high-rise completions still to fall by 57% (Sydney) and 38% (Melbourne) from 2018-19 levels:
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.