Unit approvals are outright tanking

Approvals collapse gathers pace

The ABS released the latest building approvals figures, and they ain't good.

For house approvals the only bright spot is Perth. 

Everywhere else looks set to be undersupplied. 

Unit approvals were just dire, and look especially low in Brisbane where construction costs are simply too high to make unit projects work at today's prices. 

Overall, house approvals are holding up, thanks to Perth, and unit approvals are outright collapsing.

Unit prices may need to rise 50 per cent in most areas before we see any kind of meaningful supply response (although the government will push for more Build to Rent developments). 

Overall, only 162,000 dwellings were approved over the past year, the lowest in 11 years. 

The ABS highlighted the reason for the malaise, which is high construction costs, with the average approval value rising across all states, to be 50 per cent higher over the past four years. 

The housing market looks set to be largely undersupplied for the remainder of the decade. 

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