The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Urban Leader Awards Logos RGB White
NOMINATIONS CLOSING TONIGHT FINAL CHANCE TO GET RECOGNISED FOR YOUR WORK
NOMINATIONS CLOSING TONIGHT | URBAN LEADER AWARDS
NOMINATE NOWDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
15
print
Print
OtherThomas ConwayThu 04 Oct 18

Residential Approvals at Lowest Levels in Two Years

b46489f6-f326-4a57-9532-58ee1736510a

Recent data by the ABS reveals monthly housing construction approvals in August are at the lowest level since October 2016.

When seasonally adjusted, only 16,477 dwellings were approved for construction in August, down 9.4 per cent from July and 13.6 per cent from the same time last year.

The decline was led by a 17.2 per cent decrease in unit approvals which brought the total to 23.7 per cent lower than the same time a year earlier.

Australia’s Housing Industry Association expects a 10.6 per cent decline in home building come 2019.

“Just as apartment construction drove the increase in home building to record levels, approvals data is signalling that apartments will lead the decline,” HIA economist Diwa Hopkins said.

Related: Weak Market Conditions to Impact House Prices: Report

The effects of the royal commission can still be felt as banks further tighten their lending policies following tighter APRA constraints. The reduction in lending has also stifled aspiring homeowners to secure finance.

The data comes after the recent announcement from a number of major Australian banks stating an increase in their variable mortgage rates.

A decline in population growth has proven to be another factor underpinning the decrease in dwelling approvals.

“Population growth has slowed since the government introduced stricter visa requirements last year," Hopkins said.

"As global economic conditions improve, skilled migrants who might otherwise consider immigrating to Australia could be more inclined to look to other similar advanced economies where entry requirements are less restrictive.”

Following the decline in unit approvals, detached houses have dropped by only 1.7 per cent since July and 4.2 per cent since the previous year.

ResidentialAustraliaFinanceSector
AUTHOR
Thomas Conway
More articles by this author
ADVERTISEMENT
TOP STORIES
Exclusive

Precinct Proposals Bloom as Brisbane Middle-Ring Sheds its Past

Phil Bartsch
8 Min
Exclusive

Newest Land Lease Player Plots Sector Shake-Up

Taryn Paris
5 Min
Waterloo Affordable Mirvac hero
Exclusive

Affordable Housing Rules Tighten as Proposal Deluge Continues

Clare Burnett
5 Min
Exclusive

Beyond the Aerotropolis: How Airports are Turning into Cities

Taryn Paris
6 Min
Exclusive

Inside the Strategy Behind Australia’s Largest Direct Real Estate Deal

Phil Bartsch
5 Min
View All >
Sterling Global 623 Collins Street tower rendering HERO
Development

Sterling Global Greenlit for Melbourne Heritage Highrise

Leon Della Bosca
Office

‘White Knight’ Cbus Property Takes 50pc Stake in Halo Tower

Lindsay Saunders
Morris Property Group London Circuit concept HERO
Planning

Site Consolidation Bid Latest Step for ACT Office Plan

Leon Della Bosca
The developer has one final planning hurdle before construction can begin on its long-awaited commercial project…
LATEST
Sterling Global 623 Collins Street tower rendering HERO
Development

Sterling Global Greenlit for Melbourne Heritage Highrise

Leon Della Bosca
4 Min
Office

‘White Knight’ Cbus Property Takes 50pc Stake in Halo Tower

Lindsay Saunders
3 Min
Morris Property Group London Circuit concept HERO
Planning

Site Consolidation Bid Latest Step for ACT Office Plan

Leon Della Bosca
3 Min
Industrial

Melbourne Steps Out of Sydney Data Centre Shadow

Lindsay Saunders
4 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/abs-data-shows-massive-decline-in-unit-approvals