The number of dwellings approved fell 1.9 per cent in May 2017, in trend terms, and has fallen for three months, according to data released by the Australian Bureau of Statistics (ABS) today.
The peak in multi-unit construction is well and duly done, down 27% on a year ago. We are looking at approvals, and of course there is significant building underway at the moment, but this may ease later.
“Dwelling approvals continue to weaken in trend terms, falling by around 700 dwellings over the past three months,” said Daniel Rossi, Director of Construction Statistics at the ABS. “The May 2017 data showed that the number of dwellings approved is now 18 per cent below the peak in May 2016”.
Dwelling approvals decreased in May in the Australian Capital Territory (8.2 per cent), Victoria (3.9 per cent), Western Australia (3.7 per cent) and New South Wales (2.6 per cent), but increased in Queensland (2.2 per cent), Northern Territory (2.1 per cent), South Australia (1.6 per cent) and Tasmania (1.5 per cent) in trend terms.
In trend terms, approvals for private sector houses were flat in May. Private sector house approvals rose in South Australia (1.0 per cent), New South Wales (0.4 per cent) and Victoria (0.2 per cent), but fell in Queensland (0.9 per cent) and Western Australia (0.6 per cent).
In seasonally adjusted terms, dwelling approvals decreased by 5.6 per cent in May, driven by a fall in total dwellings excluding houses (12.6 per cent), while total house approvals rose 0.4 per cent.
The value of total building approved rose 0.8 per cent in May, in trend terms, and has risen for five months. The value of non-residential building rose 4.6 per cent while residential building fell 1.5 per cent.
