Australian dwelling approvals approvals rise 1.8 percent in Jan: Matthew Hassan

Australian dwelling approvals approvals rise 1.8 percent in Jan: Matthew Hassan
Matthew HassanMarch 2, 2017

GUEST OBSERVER

Approvals rose 1.8 percent in Jan, retracing most of a downwardly revised 2.5 percent fall in Dec.

The result was above market expectations of a 0.5 percent dip.

As always, January housing data should be treated with extra caution as the summer low season amplified what are already volatile month to month estimates.

Adding to this, the detail showed the Jan monthly gain was driven by ‘units’ – the lumpier, more volatile component up 6.2 percent/mth. In contrast, private detached house approvals were down 3 percent.

Looking by state, the rebound was led by a 24 percent jump in NSW, again suggesting volatility and seasonal adjustment are exaggerating the picture here.

Notably, the weakness in private sector house approvals was broadly-based with all the major eastern states recording declines. 

Details 
Private houses  -3%mth, -9.4%yr
Private 'units'    6.2%mth, -14%yr          

NSW     24%mth, 9.4%yr
Vic       -5.3%mth, 1.5%yr
Qld       -11.9%mth, -45.4%yr
WA       3.5%mth, -21.8%yr
SA        6.5%mth, -16.9%yr       

Alteration & additions^   -17.7%mth, 2.4%yr
Non-residential^                         -14%mth, -13.8%yr
^ value 

Matthew Hassan is senior economist with Westpac.

Editor's Picks

Madeline, Moorabbin apartments approach completion
Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district
Citimax to continue to elevate Sunshine Coast living with Ascend Kings Beach
Walker Corp get sign off for SOL by Walker in Maroochydore
First look: Surfers Paradise riverfront set for more new apartments