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Thursday, 3 May 2018

Approvals hang tough (value at all-time record high)

Approvals hang tough

Very strong building approvals defying the forecasters with another 19,600 dwellings approved in March 2018.

Including the non-residential sector, the annual value of building approvals has blazed to a record $126.4 billion, including an all-time high $46 billion for commercial approvals. 

Not much of a downturn there yet, then.

The residential strength was driven by Melbourne apartments, and if any city needs more supply it's that one, with population growth at unprecedented highs. 

House approvals also followed demographic flows, with Perth in decline, and Melbourne and Brisbane rising. 

Most of the new detached housing built is really across 'Greater Brisbane', including North Lakes, Mango Hill, Moreton Bay, and Ipswich. 

Piecing it together, dwelling approvals have been trending steadily higher again over the past year, following population growth. 

The apartment downturn has been reversed too, while annual approvals of 226,275 were some way below the record 242,829 seen in the year to August 2016. 

As you can see, the high-density apartment rebound has really been a Melbourne phenomenon.

Solid result, and no slowdown in construction employment to be seen just yet.