Construction Approvals Fall 5.2% in May 1

Wednesday, July 6th, 2016
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Approvals for the construction of new homes fell 5.2 per cent in May, which was worse than market expectations of a 3.5 per cent drop.

Over the 12 months to May, building approvals were down 9.1 per cent, the Australian Bureau of Statistics has said.

Approvals for private sector houses rose 0.1 per cent in the month, and the ‘other dwellings’ category, which includes apartment blocks and townhouses, was down 11.3 per cent.

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  1. John Robertson

    Let's put this in perspective..

    The number of new houses and apartments approved for construction came in at 19,276 (seasonally adjusted). That's still a number which prior to a couple of years ago had pretty much never been seen before and can only be seen as an extremely strong reading – its nearly double what was saw in some months as recently as 2012.

    What's more worrying from this reading is that is arguably further evidence of excess building and a looming level of oversupply within the apartment sector, which will not abate in any way if we keep building at these kind of rates.