The Australian Bureau of Statistics (ABS) has released dwelling approvals data for the month of November. At the national level, the number of dwelling approvals surged by a seasonally adjusted 11.8% to 14,675. The overall lift in approvals was broad-based, with both units & apartments (+22.6%) and houses (+6.1%) rising.
However, in the year to November 2019, dwelling approvals fell a seasonally-adjusted 3.8%, with house approvals down 9.9% and unit approvals down by 5.5%:
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; albeit are showing some faint signs of life across the apartment segment:
Since initially peaking in March 2015, dwelling approvals nationally are down by 32% in trend terms.
Approvals have also fallen fast in rolling annual terms:
There were 172,623 approvals in the year to November 2019 – way below the peak of 242,162 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, 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; albeit with modest rebounds recorded in VIC and NSW:
Despite this month’s rebound, the dwelling construction bust rolls on.
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