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Wednesday, 3 June 2020

Melbourne holds up building approvals

Melbourne approvals strong

Building approvals held up at 15,294 for a modest -1.8 per cent seasonally adjusted decline in April 2020. 

The surprisingly solid result was driven by Melbourne's ongoing appetite for building units. 

...and Melbourne's appetite for building houses, for that matter.

There was also a tiny uptick in public sector dwelling approvals.

And non-residential approvals remained sound up until the end of April.

Overall, building approvals are a long way below their peaks, but have settled at a rolling annual figure of 174,000, down from the peak of 242,000 in August 2016. 

Stimulus package

The government knows that it can't successfully plug the hole in residential construction while the borders are effectively closed.

But what it can do is unleash a huge buyers grant for new dwellings and a stimulus for renovations in parallel. 

Watch this space.