Powered by MOMENTUM MEDIA
subscribe to our newsletter
New dwelling approvals drop

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.

Advertisement
Advertisement

“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.”

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.

“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

 

Latest News

Westpac and the Commonwealth Bank’s share of the third-party mortgage market has spiked, in contrast to sharp declines from NAB and ANZ, t...

A non-major lender has dropped its fixed mortgage rates, becoming the fourth lender to reprice its offerings over the past two weeks.   ...

The interest lenders earn on mortgages is expected to remain under pressure this year and next, according to Moody’s. ...

FROM THE WEB

podcast

LATEST PODCAST: What drops in fixed rates may mean for the mortgage market

Do you think the banking royal commission recommendations could negatively impact competition in the mortgage market?