Fewer multi-unit apartments in pipeline

THE downward trend for new home approvals has now been locked in for about six months, the Housing Industry Association has announced.

Building approvals data for May 2017 shows there has been a decline in the number of new home approvals this year.

HIA principal economist Tim Reardon said this downward trend confirms HIA’s forecasts for a slowing in new residential building projects through 2017.

“On the upside, new house starts did increase by one per cent this month but were still 6.9% lower than the same month last year,” Mr Reardon said.

“It is the multi-unit sector of the industry that has slowed more quickly than detached homes,” he said.

“During the three months to May 2017, multi-unit approvals fell by 27.8% when compared with the same period in 2016.”

Mr Reardon said it is important to note this dramatic slow-down in multi-units is off the back of the super-cycle of apartments that commenced in 2015.

“The amount of work that is still under construction means that the residential building industry will continue to operate at high levels well into 2018,” he said.

“This slow-down is in stark contrast to the growing demands of first home buyers and the need to promote an increase in housing supply.”

Across the states: Tasmania is the only state with a growth in approvals compared to the same quarter in 2016, up 6.9%.

New South Wales (down 22.4%); Victoria (down 11.6%); Queensland (down 21.6%); Western Australia (down 18.4%); the Northern Territory (down 51.3%) and the ACT (down 36.2%).

“South Australian approvals are just 6.1% below the same levels in 2016 due to the large number of multi-unit apartments getting the green light,” Mr Reardon said.

❝work

The amount of

that is still under construction means that the residential building industry will continue to operate at high levels well into 2018. — Tim Reardon