Approvals easing
Building approvals were expected to taper as the HomeBuilder ended, and residential approvals did decline by 9 per cent in April to 21,482.
However, detached house approvals still continued higher, to a record seasonally adjusted monthly total of 15,063.
Total dwelling approvals for the year to April were thus very solid at above 205,000.
House approvals have been rising everywhere, but have been extremely strong in Perth.
Unit approvals tanked by 29 per cent in April, however.
There will ultimately be an apartment undersupply after the international borders reopen, simply because there aren't the non-resident (i.e. Chinese mainland) investors or super fund buyers around these days to get enough new developments away.
Melbourne in particular saw exceptionally low numbers for unit approvals in April.
House prices have outperformed, logically, through the pandemic.
A unit undersupply and affordability challenges will probably see unit prices on the march in Sydney now, especially in the tightest markets such as the Northern Beaches etc.
---
Mining profits bonanza
Huge gross operating profits were recorded for the mining industry in Q1 at a record high $46.7 billion as the iron ore price soared into the stratosphere.
There's even more to come in Q2 as well!
The stimulus really kicked in from the June 2020 quarter and was reflected in a marked lift in profits almost right across the board, and especially so in construction where profits suddenly leapt massively higher.
Much of this may not be sustainable - presumably the iron ore price will revert lower, and construction will slow down sooner or later - but clearly the worst of the economic downturn was very well averted.
Australia's current account surplus absolutely screamed to a huge record high according to the Q1 indicators, equivalent to about 3 per cent of GDP.
With strong growth in net exports and support from consumption expect GDP growth for the first quarter to back up last quarter's 3.1 per cent growth with another thumping result, quite possibly even above the top end of the market forecast range at 1.8 per cent.
Nominal GDP growth looks set to do about 5 per cent over the year to March.
More later.
