The ABS released their Building Approvals data series today to July 2014. The seasonally adjusted figures show a lift on the previous month, although the original data shows a slight fall. The trend estimate for total dwellings approved fell 0.5% in July and has fallen for seven months, however 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. The trend estimate for private sector dwellings excluding houses fell 1.0% in July and has fallen for eight months. The seasonally adjusted estimate for private sector dwellings excluding houses rose 5.9% in July following a fall of 9.4% in the previous month. The mix between units and houses continues the trend, which commenced in 2009, where we see more units being approved. As we commented previously, this reflects the impact of high prices and strong demand, especially for investment property.
Turning to the value of building approvals, the value of residential building rose 0.2% and has risen for two months. However, the seasonally adjusted estimate of the value of residential building rose 0.8% following a fall of 3.2% in the previous month. In comparison, the value of non-residential building fell 26.5% after rising for two months.
