The ABS published their Building Approvals Data to July 2014 today. Statistics of building work approved are compiled from, permits issued by local government authorities and other principal certifying authorities; contracts let or day labour work authorised by commonwealth, state, semi-government and local government authorities; and major building approvals in areas not subject to normal administrative approval e.g. building on remote mine sites. The scope of the collection comprises construction of new buildings; alterations and additions to existing buildings; approved non-structural renovation and refurbishment work; and approved installation of integral building fixtures.
The trend estimate for total dwellings approved fell 0.5% in July and has fallen for seven months. The seasonally adjusted estimate for total dwellings approved rose 2.5% in July following a fall of 3.8% in the previous month. The trend estimate for private sector houses approved fell 0.2% in July after being flat in the previous month. The seasonally adjusted estimate for private sector houses rose 1.4% in July following a fall of 1.0% in the previous month. NSW appears to be underrepresented given the relative population by states.
The trend estimate of the value of total building approved fell 0.2% in July and has fallen for seven months. The value of residential building rose 0.2% and has risen for two months. The value of non-residential building fell 0.8% and has fallen for eight months. The seasonally adjusted estimate of the value of total building approved fell 10.4% in July after rising for two months. The value of residential building rose 0.8% following a fall of 3.2% in the previous month. The value of non-residential building fell 26.5% after rising for two months.
The Chain Measures series, which reflect changes in the volume of building work approved after the direct effects of price changes have been eliminated. The ABS tell us that the chain volume measures are annually reweighted chain Laspeyres indexes referenced to current price values in a chosen reference year. We see a swing up in value for both houses and other residential buildings since July 2012, impacted by lower interest rates and higher demand. However, the absolute value, was relatively similar in March 2004, to July 2014 after correcting for inflation.
Depending of whether you go with the original data or seasonally adjusted data, you can argue that residential building approvals are either up, or down.
