Dwelling approvals boomed in March ahead of the scheduled end of the Morrison Government’s HomeBuilder subsidy.
Total approvals rocketed by 17.4% in March to be 47.4% higher over the year. The rise was driven by units & apartments, which surged 63.4% in March whereas house approvals only rose 0.1%.
However, houses led approvals over the year, lifting 60.9% versus a 27.4% rise across the unit & apartment market.
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The next chart, which presents the data in seasonally adjusted terms, plots the changes:
According to Daniel Rossi, Director of Construction Statistics at the ABS:
“The total number of dwellings approved in March was the second highest recorded, only exceeded by the November 2017 result”…
“The number of private sector house approvals also remained at elevated levels due to HomeBuilder, edging up 0.1 per cent to a new record high in March.”
Annual dwelling approvals continue to rebound, driven by detached houses where approvals are running well above the historical average, offsetting recent heavy falls in apartment approvals:
The next chart plots annual approvals across the major jurisdictions, which shows that all markets have rebounded from recent lows:
Based on this data, dwelling construction should remain strong for the remainder of the year given approvals lead commencements and completions.
The big slowdown will come in 2022 as the pull forward of demand from HomeBuilder ends.