The Australian Bureau of Statistics (ABS) has released dwelling approvals data for the month of October. At the national level, the number of dwelling approvals tanked by a seasonally adjusted 8.1% to 13,049. The overall fall in approvals was broad-based, with both units & apartments (-11.3%) and houses (-7.0%) diving.
In the year to October 2019, dwelling approvals crashed by a seasonally-adjusted 23.6%, with house approvals down 19.4% and unit approvals tanking by 30.8%:
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 35% in trend terms.
Approvals have also fallen fast in rolling annual terms:
There were 173,138 approvals in the year to October 2019 – way below the peak of 242,207 approvals in the year to August 2016 – with most of this growth in approvals coming from units and apartments, which are still running above the 30-year average, whereas house approvals are now running below 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:
The dwelling construction bust is building steam.