Residential building approvals declining during September period

Residential building approvals declining during September period
Residential building approvals declining during September period

Total dwelling approvals experienced a large decline during September with new dwelling approvals falling 8.7 percent during September and multi-unit developments down 17.5 percent month on month according to the Housing Industry Association.

During September, total new dwelling approvals fell by 8.7 per cent due to big reductions in the larger states, according to Shane Garrett, HIA Senior Economist.

He said during the month, a total of 18,945 approvals were recorded with detached house approvals increasing by 1.7 percent during the month, while multi-unit approvals were down by some 17.5 percent in month-on-month terms.

“Despite the large drop in multi-unit dwelling approvals during September, the volume of approvals in this segment of the market is still at very high levels by historic standards - this means that the immediate pipeline of work will remain very elevated on the apartment side,” he said.

“The concentration of multi-unit dwelling construction in the large states like NSW and Victoria means that these big players bore the brunt of the reduction in multi-unit approvals during September.

“During September, detached house approvals rose to their highest level since May which was good news for both South Australia and Western Australia where detached houses still account for the large majority of new dwellings.

"In September 2016, total seasonally-adjusted new home building approvals increased by 9.4 percent in South Australia and by 5.5 percent in Western Australia.

"During September, building approvals experienced the largest decline in Victoria (-15.6 percent) followed by New South Wales (-13.3 percent).

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 Residential building approvals declining during September period

 

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Hia Building Approvals

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