August approvals improve but still well below last year

Approvals for new housing rose 0.4 per cent in August 2017, in seasonally adjusted terms, reversing some of the decline recorded in July, according to data released by the Australian Bureau of Statistics (ABS) today.

“Apartment approvals bolstered a more positive result for August, up by 4.8 per cent in the month, while detached housing approvals fell by 0.6 per cent,” Matthew Pollock, National Manager Housing said.

“Approvals are still well down on a year ago and provide an early sign that residential construction may also be about to enter a more moderate period. The value of residential building work fell in the March quarter and we expect a similar result when the June quarter statistics are released next week,” he said.

“But with the latest cyclical trough in residential approvals passing us back in May, this latest data also supports an outlook for a more moderate correction to the value of residential construction work over the next year or two. We still expect activity to remain high by historical standards and provide plenty as a source of employment and growth for the economy,” Matthew Pollock said.