Australian dwelling approvals dipped in July: Matthew Hassan

GUEST OBSERVER

Approvals dipped 1.7% in July, the pull-back from June’s 11.7% jump much milder than expected (market forecast was –5%, Westpac –4%).

The detail even showed a further small rise in high rise approvals (about 4%) which had been a big driver of the June gain (up about 15%mth).

Non high rise approvals look to have pulled back about 3% from an 8.7% gain in June with private house approvals holding flat showed more Mid-rise approvals look to have pulled back while detached house approvals were flat.

Note that this is broadly consistent with construction related finance approvals which have shown a clear firming in recent months.

By state, a solid gain in NSW was offset by declines elsewhere. 

Details 
Private houses  flat%mth, 2.3%yr
Private 'units'    –6.7%mth, –29.5%yr     

NSW     1.5%mth, –15.9%yr
Vic       –0.3%mth, –7.8%yr
Qld       –2.6%mth, –20.1%yr
WA       –11.1%mth, –21%yr
SA        0.3%mth, 6.3%yr          

Alteration & additions^   –5.3%mth, 4.3%yr
Non-residential^             2.4%mth, 19%yr
^ value  

Matthew Hassan is senior economist with Westpac.