Pete Wargent blogspot


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Monday, 10 January 2022

Sydney unit supply dries up

Unit approvals fizzle

Only 757 units were approved in Sydney in November - with Delta disruptions probably a factor - as low as we've seen for a monthly total in about a decade. 

I think we'll end up with a unit shortage in Sydney, and sooner than people expect (so does Tim Reardon, Chief Economist of the HIA). 

Perth's boom in detaching housing construction appears to be rolling over, and perhaps the same holds true in Brisbane and Adelaide as the government stimulus effect fades. 

Overall, though, it was still a solid enough release with 16,448 approvals in November, seasonally adjusted.

Over the year to November, there were more than 229,000 dwellings approved, which is a very strong annual number...albeit now fading. 

Most likely dwelling construction will fade through 2022, thus in time becoming a headwind for the economic recovery. 

You can find more comprehensive details,  as ever, from data king James Foster here

In Sydney today myself, and staying in town for a couple of weeks - my first visit in a YEAR.