Tuesday, 9 January 2024

2023 a bit of a horror year for building approvals

Approvals set to recover

Building approvals of 14,500 were slightly improved in November.

House approvals have really struggled post-Homebuilder stimulus.

The shining lights here are likely to be Melbourne, which has some huge master-planned projects on the way, and Perth, which is suffering from a chronic shortage of homes on the market in the face of booming population growth.


Attached dwelling approvals are off the mat, with the rebound largely driven by regional projects in New South and Victoria, more so than anything in the capital cities. 

Overall, house approvals have remained at around decade lows, of around 8,500 per month.


Source: HIA

The Housing Industry Association commented that a slowdown is on the way for construction:


Source: HIA

Piecing it together, it looks as though the nadir for building approvals in this cycle was seen around March 2023. 


Despite the modest recovery since then, the annual number of dwellings approved at 166,000 was the lowest in well over a a decade (or 125 months).

Whether or not these projects are delivered on a timely basis is another question entirely, and this isn't only an Australia problem for the struggling construction sector. 

One of the UK's largest homebuilders went bust yesterday, for example, with hundreds of jobs to go.

---

P.S. Whenever you’re ready…here are 4 ways I can help you manage your own money and go next level wealth:

  1. Boom or Bust in 2023 – 20 minute online workshop for investors

Register for my next free online training - Boom or Bust? How to change your investment plan for 2023 - book in here

You also download a free copy of my e-book The Only 6 Ways to Become Wealthy here.

  1. Subscribe to our Top 10 Podcasts for Investors

Listen in to our podcasts

The Australian Property Podcast is one of Australia's biggest business podcasts.

And our enormously popular Low Rates High Returns Show is also available on Spotify.

  1. Subscribe for my free daily blog

Subscribe for my free daily blog with over 3.4 million hits here. 

You can also catch up with me daily on Twitter here, where I'm active daily and have over 13,300 followers. 

  1. Work with me privately

For a limited time you can book in a free diagnosis call with me here.

at