Building approvals to tank
Attached dwelling approvals dropped significantly by a seasonally adjusted -21.2 per cent in August, to 5,670.
South-east Queensland has been pumping the numbers for attached building approvals over the past couple of years, but reportedly pre-sales have fallen away sharply since the May Federal Budget.
House approvals have also been solid in Perth and Brisbane of late, taking total house approvals up to a 5-year high of around 10,890 for the private sector in the month of August.
Again, however, since the Federal Budget enquiry for new homes has tanked, and this will likely flow through to approvals data over the next year or two.
Overall, there were around 16,950 dwellings approved in August, seasonally adjusted, for a decline of -6.1 per cent.
Approvals had been picking up, but now higher interest rates and build costs are bringing the cycle to an end.
Over the year, around 207,000 dwellings were approved.
Nobody really talks about the 1.2 million new homes target any more - clearly we won't get anywhere close to that - especially given the recent surge in developer insolvencies.
Indeed, not all dwellings approved will actually be built.
Finally, the monthly figure for non-residential building work approved is extremely noisy and lumpy as data centres are approved, and it fell by -45 per cent in August...the trend has been higher, though, as more data centres are to be built in Sydney, Melbourne, and it appears Queensland.
Overall, building approvals figures have been solid until now, but are softening in real time, and are widely expected to drop away over the next 12 months.
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