Aussie dwelling approvals dead cat bounce

New data released today by the Australian Bureau of Statistics (ABS) shows that dwelling approvals rebounded by 9.9% in May but were down 20.9% year-on-year.

The rebound was driven by unit approvals, which surged 32.0%, whereas house approvals fell 2.7%.

Over the year, houses approvals fell 29.5% whereas unit approvals fell 5.4%.

The next chart, which presents the data in seasonally adjusted terms, plots the changes:

Annual dwelling approvals continue to fall from peak, driven by house approvals:

The next chart plots trend approvals across the major jurisdictions, which shows that all markets have turned down:

The big slowdown should arrive next year after the large number of HomeBuilder stimulus homes currently under construction are finished.