The number of dwellings approved fell 2.9 per cent in November 2016, in trend terms, and has fallen for six months, according to data released by the Australian Bureau of Statistics (ABS) today. This is our preferred measure as it irons out some of the monthly data bumps.
In November dwelling approvals decreased, in trend terms, in the Northern Territory (5.0 per cent), New South Wales (4.3 per cent), Queensland (3.9 per cent), the Australian Capital Territory (3.4 per cent), Victoria (2.5 per cent) and South Australia (1.1 per cent). Dwelling approvals increased, in trend terms, in Western Australia (1.9 per cent) and were flat in Tasmania.
In trend terms, approvals for private sector houses fell 0.4 per cent in November. Private sector house approvals fell in New South Wales (1.0 per cent), Victoria (0.6 per cent) and South Australia (0.4 per cent), but rose in Queensland (0.3 per cent) and Western Australia (0.3 per cent).
In seasonally adjusted terms, dwelling approvals increased by 7.0 per cent in November, driven by a rise in total dwellings excluding houses (17.3 per cent). Total house approvals fell 0.4 per cent.
The value of total building approved fell 2.6 per cent in November, in trend terms, and has fallen for four months. The value of residential building fell 2.8 per cent while non-residential building fell 2.3 per cent.
However, the Housing Industry Association focused on the seasonally adjusted series saying that the volume of approvals for new dwellings bounced back strongly during the month of November, particularly on the multi-unit side.
“November was a particularly good month on the multi-unit side of the market with approvals increasing by 17.3 per cent during the month following a big fall in October. However, we anticipate that new dwelling starts will decline over the next 12 months, with this likely to be felt on the ground towards the end of this year”.