This morning the ABS will release its latest building approvals report for November, a release that will be heavily scrutinised given recent signs of softening in the Australian housing market.
Here’s the state of play.
- Australian building approvals continued to surge in October, rising 3.9% to 19,532. The increase left approvals up 12.3% from a year earlier.
- Strength in multi-dwelling approvals, up 10.1% to 10,218, offset weakness in detached housing approvals which fell 2.1% to 9,435.
- From a year earlier multi-dwelling approvals increased by 30.2%, mitigating a 2.3% decline in those for detached houses.
- Over the the year the number of multi-dwellings approved increased to 117,072, topping the 116,111 registered for detached houses.
- It was the first time ever that multi-dwelling approvals outnumbered those for detached houses over a 12-month period.
- The surge in multi-dwelling approvals comes amidst reports that new apartment prices in some capital cities are already falling, suggesting that supply gluts may be potentially forming.
- The value of total buildings approved rose by 6.4% having fallen in the two months prior. The value of residential building increased by 9.8% while the value of non-residential building slid 1.0%, the third decline in a row.
- In November economists expect some statistical payback for the strength seen in October, forecasting that approvals will decline by 3.0%.
The report will be released at 11.30am AEDT. Business Insider will have full coverage as soon as the data drops.