Building approvals data for March 2017, released by the ABS indicate that residential building is set to slow, according to the Housing Industry Association (HIA). Source: Timberbiz
HIA Acting Chief Economist Warwick Temby said: “the 13% decline in new dwelling approvals during March (seasonally adjusted) confirms HIA’s forecasts for a slowing in new residential building projects through 2017.
“From the record highs in approvals in 2016 the slowing in new projects is only to be expected.
“Also, not surprising is that the multi-unit sector of the industry has slowed more quickly than detached homes.
“Multi-unit approvals have fallen 16% when compared with an 8% fall for detached homes in the March quarter 2017 when compared with the same quarter of 2016.
“Notwithstanding the slowing in new projects the amount of work currently under construction means that the residential building industry will continue to operate at high levels well into 2018.
“The declining level of new activity represents an excellent time for tomorrow’s Federal Budget to provide support for first home buyers and to promote more housing supply.
“Both New South Wales and Queensland saw approvals fall more than 20% in March mostly from their multi-unit sectors, which had seen strong increases in February.
“Only Tasmania and South Australia recorded increases in approvals in March; up 13% and 0.3% respectively. Falling approvals in the other states and territories included Victoria (-1%),
and Western Australia (-2%).
In trend terms, approvals contracted by 18.0% in the Northern Territory with a decline of 7% occurring in the Australian Capital Territory.
