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House Building Approvals Look To Have Turned

AUSTRALIA DATA

Building approvals for August rose a stronger than expected 7% m/m after an upwardly revised 7.4% drop. Private sector house approvals rose 5.8% m/m and apartments +9.4%. The monthly rebound is not as strong as it looks due to the volatility of the multi-dwelling component which is driving negative 3-month momentum. However, the building of houses is looking more promising. New homes are needed given the shortage and the record growth in the working-age population.

  • Total building approvals remain 15.2% lower than pre-Covid levels.
  • There are signs that approvals for private houses are recovering as they posted their second straight monthly rise and are now down 15.2% y/y improving from -16.9% in July. 3-month annualised momentum also turned positive in August at 5%. The strength was broad based across states.
  • Multi-dwelling approvals are volatile and August last year saw a very strong increase. 3-month annualised momentum is very negative.
  • The value of non-residential building rose 2.3% m/m.
Australia building approvals for private houses %

Source: MNI - Market News/ABS

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