Growth appears in multi-unit construction
ABS building approvals measures for July 2016 have reported a increase in approvals, following two months of decline.
“A stellar rise of 23.4 per cent in approvals for ‘other dwellings’ in July 2016 took this new building approvals component within a whisker of its cyclical peak of 11,572 reached in May 2015,” Chief Economist, Dr Harley Dale from the Housing Industry Association reported. “That drove the headline 11.3 per cent rise in total seasonally adjusted building approvals.”
The July 2016, total seasonally-adjusted new home building approvals saw a healthy 17.5 per cent increase in Western Australia.
“Looking through the inevitable monthly volatility, both ABS Building Approvals and HIA New Home Sales are signalling some further growth in ‘multi-unit’ construction, but a gradual decline in detached house building,” Harley Dale noted. “There is some further spark to semi-detached/townhouse dwellings – this is a market to keep a positive eye on.”
“We have been forecasting a healthy short term outlook for new home building for some time, while noting the relatively narrow base in terms of both geography and dwelling type,” concluded Harley Dale.
“Today’s result doesn’t change our view, but does remind us about the uncertain outlook the new home building sector faces due especially to the record pipeline of work yet to be started for medium/high density dwellings.”
Source: HIA Media Release – ‘Multi-unit’ surge lifts approvals in July. Released 30th August 2016.