Thursday, May 2, 2013

Unit approvals still dead

Building approvals for March have been released and Macrobusiness has a posted with a summary and array of graphs: Dwelling approvals fall on units:

"The Australian Bureau of Statistics (ABS) has just released dwelling approvals data for the month of March. At the national level, the number of dwelling approvals fell by a seasonally adjusted -5.5% to 12,599. While detached house approvals rose slightly, (+0.4%), this was more than offset by an -8.3% fall in apartment approvals. Consensus was for a total rise in approvals of 1.0% over the month."

However there is variation between states and the trend in Queensland remains more positive:

"As you can see, dwelling approvals are in a short-term uptrend in New South Wales, Queensland and Western Australia, whereas they are trending down in Victoria and are going sideways in South Australia. Overall, there still isn’t much evidence that Australia is shifting to houses from holes."

A positive trend remains elusive in Cairns with 25 houses approved in March and a total 306 dwellings in the last 9 months. So the trend within CRC continues to drift sideways near the bottom of its recent historical range as noted in the most recent CairnsWatch Report:

"The building approval trend has eased off over the last three months, but in our view this stems from ‘bunching effects’ in new construction approvals rather than any fundamental slowdown in housing demand."
The multi-unit sector in particular remains Dead in the water with no further approvals. I also recently posted on Approvals & Stocks.

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