Apartment approvals on the rise: ABS
Attached dwelling approvals – for apartments, townhouses and semi-detached homes – have jumped, according to data released by the Australian Bureau of Statistics (ABS).
Attached dwelling approvals rose 13.7% in August, sitting at 6,453.
It was the highest August figure since 2017.
Total approvals over the year to August was up 8.5 per cent at 74,000.
"The lag from approvals to work done suggests dwelling construction will remain strong this year," Shane Oliver, the AMP Capital chief economist said.
The overall number of dwellings approved rose 6.8 per cent in August (seasonally adjusted) to 18,716 homes, ending four consecutive monthly declines.
The number of dwelling approvals rose in Western Australia (21 per cent), South Australia (11.8 per cent), Victoria (10.5 per cent) and Queensland (4 per cent).
Falls were recorded in Tasmania (-18.9 per cent) and New South Wales (-2.3 per cent).
It represented a recovery from a 8.6 per cent dip in July. The peak month was March with 23,445 approvals.
The increase was driven by approvals for private sector dwellings other than houses, which rose 13.7 per cent, ABS construction statistics director Daniel Rossi said.
Rossi noted the result was driven by record low interest rates, boosted household savings and confidence in the housing market.
Total approvals over the year to August was 229,035, up by almost a third on their level a year earlier.
After some improvement in approvals performance in NSW in the earlier part of this year, the lockdown has seen a reversal with approvals going backwards for the 4th month in a row, Tom Forrest at the Urban Taskforce noted.
"That said, they remain well above the number of approvals recorded this time last year," Forrest said.
