Dwelling approvals collapse to 8-year low

The Australian Bureau of Statistics (ABS) has released dwelling approvals data for the month of June. At the national level, the number of dwelling approvals fell by a seasonally adjusted 4.9% to 12,213. The overall decline in approvals was broad-based, with units & apartments down 5.3% and house approvals down 5.7%.

Over the year, dwelling approvals collapsed by 15.8%, with unit & apartment approvals falling 30.5% and house approvals falling 7.0%:

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:

As you can see, dwelling approvals have collapsed to an eight year low, down 43% from their October 2015 peak.

Approvals have also fallen heavily in rolling annual terms, down 30% from peak:

The below chart shows the time-series of approvals at the state level on a rolling annual basis. As you can see, VIC rebounded whereas NSW, QLD and WA have all crashed:

The industry will be hoping that HomeBuilder and state government grants can plug the construction hole. I very much doubt they will turn the tide and prevent massive retrenchment across the construction industry.

Unconventional Economist

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