Powered by MOMENTUM MEDIA
subscribe to our newsletter

New dwelling approvals drop

The total number of new dwelling approvals declined in May, following two consecutive months of increase, the Australian Bureau of Statistics has revealed.

Total new dwelling approvals fell by 5.2 per cent throughout the month, including a 10.3 per cent decline in multi-unit approvals.

Detached house approvals saw a slight increase of 0.2 per cent over the same period.

“Multi-unit approvals tend to bounce around a lot from one month to the next, but it’s been clear for some time that activity on this side of the market has peaked,” HIA senior economist Shane Garrett said.

“Interestingly, the RBA cut interest rates during May and [the] result indicates that this move may have helped contribute to steadier conditions for detached house approvals.”

Advertisement
Advertisement

Mr Garrett said the figures fell in line with the HIA’s forecast that new home building activity was in the process of declining from last year’s record peak to more modest levels.

“The contraction activity is predicted to be concentrated on the multi-unit side, with a more measured reduction in detached house building,” he said.

The sentiment was echoed by the Property Council’s chief of policy and housing, Glenn Byres, who said the data was a warning sign for governments.

“We have a fall of 9.1 per cent in annual terms, with a decrease of 11.3 per cent in seasonal terms for apartments over the month, yet three state governments in New South Wales, Queensland and Victoria are rushing ahead with taxes on investment that will hurt supply and housing affordability,” Mr Byres said.

“The official data shows Victoria has fallen 12.8 per cent since it announced its new tax, and there are softening conditions in NSW and Victoria.

PROMOTED CONTENT


“The new anti-investment taxes represent bad taxes at a bad time and all three states should be instead looking to real policies to improve housing affordability.”

[Related: New home sales facing downturn]

New dwelling approvals drop
mortgagebusiness

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

Latest News

Reverse mortgage lenders have accessed a small fraction of the potential retiree housing market in Australia, according to Deloitte. ...

Pepper Money has priced its second I-Prime deal for the year, upsizing the figure to $850 million. ...

The LMI provider has announced a new CFO following the resignation of its current CFO, effective 24 September. ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.