Master Builders Chief Economist Shane Garrett gives us some pointers on the latest residential building approvals 

He says that the ABS figures for November 2018 indicate that the volume of approvals for new homes sank to their lowest since August 2013. A total of 15,465 new approvals were registered during the month, which represents a decline of 9.1% on the previous month and was down by some 32.8% on a year earlier.

According to Shane,  approvals offer a useful guide as regards the amount of new residential building activity to be expected to commence work on the ground over the coming six months or so. The reduction in approvals was widespread in geographic terms with Tasmania being the only state or territory to buck the trend and experience growth during November. The largest reductions were in Victoria (-14.6%), the ACT (-9.5%) and NSW (-9.3%).

According to Shane, the fall-off in new dwelling approvals has been much more pronounced on the high density side of the market. Over the year to November, apartment/unit approvals fell by 53.8% compared with a reduction of 6.5% for detached houses. There is a strong link between continued reductions in new home approvals and the marked tightening of credit that has followed the commencement of the banking Royal Commission.

Stay tuned for monthly updates from Shane on the state of the market. 

Ends...

And here's Shane on the ABS Housing Finance numbers from October 2018:

Ross Buchanan

Digital Communications Officer

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