This article is from the Australian Property Journal archive
BUILDING approval recorded a larger than expected decline in May, falling 5.2% to 19,276 dwellings, following a 3.3% increase in April, according to the Australian Bureau of Statistics.
The decline is larger than the market forecast of a 3% fall.
The May fall means building approvals are 9.1% lower than the same month a year ago.
Private-sector approvals fell by 5.9% after a 3.4% rise in April to be down by 9.2% over the year. Private-house approvals was marginally higher, by 0.1% after falling by 1.8% a month earlier, to be 1.3% higher than a year ago.
Meanwhile the volatile private other dwellings sector fell by 11.3% after rising by 8% in April. It is now 18.2% lower than 12 months ago.
Approvals rose only in Victoria, by 3.1%. They were flat in Tasmania.
The biggest declines were in Western Australia (down 20%) and Queensland (down 17.6%). In trend terms, approvals are rising in three states and falling in three. The fastest pace of increase is in New South Wales (up 2%), while the weakest State is Western Australia (down 2.6%).
WA leads the way in terms of having the longest trend decline (since September 2014). Trend approvals are rising rapidly in both Territories, by 18.7% in the Northern Territory and by 8.2% in the ACT.
In the past year, approvals have risen in just one state, South Australia (up 27.9%), while the biggest falls have been in WA (down 43.7%) and Tasmania (down 19.5%). In trend terms, approvals have risen by 18.2% in the Northern Territory and by 35.1% in the ACT.
Australian Property Journal
