A significant dip in housing approvals has added fuel to the already hot property market, despite a lockdown softening.
Australian Bureau of Statistics data shows the number of private-sector houses approved dropped 11.8 per cent in June, following the downward trajectory since the end of the Federal government’s HomeBuilder stimulus package.
Across both houses and units the number of dwellings approved fell 6.7 per cent, compared to a 7.6 per cent decrease in May.
BIS Oxford Economics economist Maree Kilroy said house approval figures had dipped from the record level achieved in the past 12 months.
“As expected, house approvals drove the fall, down 12 per cent month-on-month,” Kilroy said.
“However, the 2020-21 financial year saw houses reach a new record level of 147,624 approvals.
“Attached dwellings gained 4 per cent with apartment construction looking to have passed the trough.”
Kilroy said the fading effect of the HomeBuilder program meant house approvals and new construction loans would continue to ease, while labour and material shortages would bite into delivery times for new homes.
Dwellings approved by state or territory
| Region | Houses approved | Monthly % change | Units | Monthly % change |
|---|---|---|---|---|
| NSW | 2482 | -14.5 | 5169 | -12.7 |
| VIC | 4307 | -2.3 | 6785 | 12.8 |
| QLD | 2015 | -25.2 | 2996 | -18.4 |
| SA | 1234 | 14.8 | 1414 | 8.6 |
| WA | 1595 | -21.1 | 1847 | -30.5 |
| TAS | n/a | n/a | 342 | -14.9 |
| National | 12,037 | -11.8 | 18,911 | -6.7 |
^Source: Australian Bureau of Statistics
Queensland and Western Australia experienced the biggest decline in both house and unit approvals.
In Western Australia overall dwellings approvals dropped by 30.5 per cent, followed by Queensland at 18.4 per cent and Tasmania at 14.9 per cent.
In the 2020-21 financial year total dwelling approvals nationally were 27.3 per cent higher than in 2019-20 financial year, driven by a 42.8 per cent surge in private sector house approvals.
Dwelling approvals increased more than 88 per cent in Western Australia over the financial year, while in Queensland it was up 36.7 per cent and Tasmania experienced a 33.9 per cent increase.
Dwellings approvals by building type
^ Source: Australian Bureau of Statistics
Westpac senior economist Matthew Hassan said while sales were down about 10 per cent in Sydney, due to lockdowns, but he said “lockdowns and reopening rebounds” in Sydney and Melbourne had negated each other last month.
“Initial estimates show turnover up slightly in the July month but still showing solid momentum on a three-month basis, up 6.6 per cent for the quarter and 70 per cent for the year,” Hassan said.
“Sales continue to outstrip new listings by a wide margin … Australian dwelling prices posted another solid gain in July but with clearer signs of moderation from the red-hot pace through the first half of the year.
“Prices are up 15.1 per cent over the year … the three month annualised pace of gains has moderated to 21 per cent from a cracking 40 per cent peak in April.”
Article Source: www.theurbandeveloper.com
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