The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
UPCOMING EVENT - INDUSTRIAL AND LOGISTICS SUMMIT 16 OCTOBER, SYDNEY
INDUSTRIAL AND LOGISTICS SUMMIT - TICKETS NOW ON SALE
LEARN MOREDETAILS
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
2
print
Print
ConstructionAna NarvaezTue 02 Apr 19

Shock Surge in Apartment Approvals Unlikely to Last: ABS

805b926c-cf98-41c0-8608-d18824e79928

In some good news for property data watchers, ABS building approvals for the month of February have experienced a substantial uptick, underpinned by an unexpected surge in multi-unit approvals.

Total approvals rose by 19.1 per cent in February, buoyed by a massive 64.6 per cent surge in apartments, which masked a 3.6 per cent fall in permits to build new homes.

The unlikely figures were driven by a 134.1 per cent rise in Victoria and 69.5 per cent uptick in New South Wales.

The rise in home building permits follows on from last month’s figures, which marked the first increase in approvals figures since September 2018. However, economists warned that the headline figures should be viewed with caution, and may well reverse next month.

“Despite the surge in multi-units approvals, they remain 32.9 per cent lower than the same three month period last year,” HIA chief economist Tim Reardon said.

“There remains a significant volume of multi-unit construction in the pipeline this year.”

Related: Subdued Growth for New Home Sales: HIA

Expect a reversal

UBS analysts pointed to the volatility of the month-on-month building approvals data.

“The rise is narrowly focused in NSW and Victoria’s high-rises, that’s not a trend yet. We expect a sharp retracment next month.”

While dwelling values have been trending downward for 17 months, there are signs the downturn is losing some steam. Corelogic’s national home value index, published on Monday, revealed the pace of declining property values eased relative to the past four months.

The Housing Industry Association remains positive, and Reardon says the results are an “encouraging sign” that the downturn is modest relative to historical comparisons.

“This is consistent with our expectation that this downturn will be sharp and shallow with detached building activity remaining above the long term average at the bottom of this downturn.”

ResidentialAustraliaConstructionFinancePolicyReal EstatePlanningPlanningSector
AUTHOR
Ana Narvaez
The Urban Developer - Editorial Director
More articles by this author
ADVERTISEMENT
TOP STORIES
Salta MD Sam Tarascio
Exclusive

Why Salta Won’t Break Ground on $400m Pipeline

Leon Della Bosca
7 Min
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
View All >
Planning

State Goes Public with Plans for 10,000 Victorian Homes

Lindsay Saunders
Life Sciences

NSW Healthcare Asset Portfolio Comes to Market

Lindsay Saunders
Exclusive

Dark Horse: Self Storage Sector’s Biggest Players

Shravanth Reddy
LATEST
Planning

State Goes Public with Plans for 10,000 Victorian Homes

Lindsay Saunders
2 Min
Life Sciences

NSW Healthcare Asset Portfolio Comes to Market

Lindsay Saunders
4 Min
Exclusive

Dark Horse: Self Storage Sector’s Biggest Players

Shravanth Reddy
3 Min
SHMH Penrith hero
Residential

First Stage Filed for $1.1bn Penrith Masterplan

Clare Burnett
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/approvals-for-apartments-rose-a-whopping-64pc-abs