Multi-unit Approvals Dip, But Detached Homes Steady The Ship

ABS figures released today show that total new home building approvals fell in June 2015, due to a sharp decline in approvals for non-detached housing. Approvals for detached housing continued an 18-month trend of relatively strong and steady levels, said the Housing Industry Association.

In June 2015, the number of new home building approvals declined by 8.2 per cent to 17,868 in seasonally-adjusted terms. During the June 2015 quarter, approvals totalled 56,351, 4.8 per cent lower than in the previous quarter.

HIA Economist Diwa Hopkins said,“Both the monthly and quarterly declines in new home building approvals were driven by falls in non-detached housing approvals.”

“It certainly looks like this segment of approvals has peaked, with each of the last three months of activity falling well short of the record-high level reached in March this year.”

“In contrast, detached house approvals have been tracking fairly steadily at relatively strong levels for the past 18 months. Approvals in this segment of the market have maintained an average of 9,650 per month since January 2014. The last time such levels were similarly maintained was over a decade ago.”

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In the month of June 2015, total seasonally-adjusted new home building approvals declined in Victoria (- 23.9 per cent), Western Australia (-13.2 per cent), New South Wales (-9.7 per cent) and Tasmania (-7.3 per cent). Elsewhere, approvals increased: by 16.3 per cent in Queensland and 10.4 per cent in South Australia.

In trend terms, approvals also increased in the Australian Capital Territory (+14.7 per cent) and the Northern Territory (+9.1 per cent).

During the June 2015 quarter, approvals declined in each of the eastern seaboard states as well as in SA: down by 14.7 per cent in Queensland, 13.8 per cent in SA, 8.3 per cent in NSW and by 4.4 per cent in Victoria. Elsewhere approvals increased: by 46.8 per cent in the ACT, 19.2 per cent in Tasmania, 13.3 per cent in the NT and by 2.0 per cent in WA.