Approvals trend down
Building approvals bounced back to a seasonally adjusted 17,569 in November, but the trend is still down, especially for units, townhouses, and apartments.
The annual total number of approvals continues its long drop back to earth, now down to 232,600 from well above 241,000 at the 2015 peak.
Most sectors of the market are now trending down, but the 'high rise' sector has the furthest to fall.
Around the traps
Developers lost confidence in building detached homes with an acceptable profitable margin in Perth long ago, but most other capital city markets are holding steady.
There was a bit of a pullback in Sydney apartment approvals this month, but Melbourne rebounded.
The standout trend is to be found in Brisbane where apartment approvals will likely now go into freefall, reflecting an inner city market that will be well oversupplied in 2017.
This particularly relates the high density sector of tall tower blocks.
As the old saying goes, the bigger the boom...
Overall, this was actually a pretty solid result, but Perth approvals and Brisbane apartment approvals need to correct, and are now doing so.
While the pipeline of dwellings under construction is still sizeable, construction activity in the residential sector is set to become a negative contribution to Australia's national accounts.