Approvals through the lows
It looks as though unit and attached dwelling approvals are probably through the cycle lows across most of the capital cities now, even if they remain far below the required levels.
At the same time, detached house approvals across the capital cities appear to have lost some momentum, and seem rather directionless.
Overall, seasonally adjusted building approvals rebounded in May from the previous month's drop, but only by around 3 per cent to 15,200...and this comes off the back of a 12 per cent in decline in approvals from January to April.
As such, the 'trend' estimate for building approvals appears to be declining lately.
However, annual building approvals picked up a little to 183,000, and I'd say they'll most likely rise from here as interest rates fall and building approvals rise.
Across the financial year to date there have been around 169,000 dwellings approved, which is only around ¾ of the implied target of 220,000.
Of course, just because a building is approved doesn't necessarily mean it will be built, but the market dynamics for developers are generally improving now.
Overall, largely more of the same this month, with building approvals still running well below the desired level, but things will probably start to pick up from here.
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