REPEAT: MNI: Australia Dwelling Approvals Up But Trend Slows

Repeats Story Initially Transmitted at 01:19 GMT Nov 30/20:19 EST Nov 29

     SYDNEY (MNI) - Dwelling approvals rose for the third straight months in

October but the trend growth rate fell to the lowest in five months.

     Data published by the Australian Bureau of Statistics Thursday showed

dwelling approvals rose 0.9% m/m in October, beating expectations for a 2.0%

decline. However, the trend growth rate eased to +0.7% m/m from a high of +1.4%

in June.

     In trend terms, approvals eased for both private houses and multi-units,

with the rate for multi-units easing to +0.8% m/m in October from +2.0% in

September.

     In value terms, total buildings approved fell 1.1% m/m in October as the

5.4% rise in residential building approvals was offset by a 10.1% fall in

non-residential approvals.

     Overall, the data are in line with the Reserve Bank of Australia's view

that dwelling investment has peaked but will remain at high level over the next

couple of years. Significantly, the RBA doesn't expect dwelling investment to

contribute to overall economic growth. On the contrary, the impact of dwelling

supply on house prices and rents could become a headwind to the economy because

of the dampening effect it could have on growth and inflation.

     In the months ahead, the RBA is likely to watch that impact closely as it

could be an important determinant on which direction monetary policy takes.

     From building-approvals data for October published by the Australian Bureau

of Statistics on Thursday:

                                           October                     September

--------------------------------------------------------------------------------

                              (M/M% unless stated;          (M/M% unless stated;

                              seasonally adjusted)          seasonally adjusted)

Dwelling Units

Approved                                      +0.9       +0.6(revised from +1.5)

MNI Median               -2.0 (range -4.0 to +2.0)

Dwelling Units

Approved (Trend)                              +0.7                          +1.4

Dwelling Units

Approved Y/Y                                 +18.4    +0.2(last month's release)

Private Houses                                +1.5                          +1.1

Private Units

Excluding Houses                              -1.0                          -0.1

--MNI Sydney Bureau; tel: +61 2-9716-5467; email: sophia.rodrigues@marketnews.com

[TOPICS: MTABLE]