Westpac expect the HomeBuilder unwind has further to run
Monthly approvals are still up 21% annually
Jonathan ChancellorSeptember 27, 2021
Dwelling approvals continued to unwind after the end to the major policy–induced pull-forward.
Approvals have declined by 25% from their March peak, given the end of the Federal Government’s HomeBuilder scheme.
Westpac noted dwelling approvals had posted a "phenomenal" 84% surge between last year’s COVID low and the March 2021 peak.
"Even with the big decline since then, monthly approvals are still up 21%yr and 8.6% above their pre–pandemic level," the Westpac analysis noted.
"The HomeBuilder unwind likely has further to run, approvals potentially dropping well below their ‘underlying trend’ pace as the shadow of the pull–forward effect rolls through.
"We expect approvals to fall another 5%," Westpac noted.
Jonathan Chancellor
Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.