Building Approvals:June 2013 - Houses increase whilst apartments decrease

JUNE KEY FIGURES

The latest ABS figures show a divergence in the new house and other dwelling segment of the market. The figures show that there is a growth in houses which indicates the improvement in the owner occupier market. This could be a result of the lower interest rates combined with the growth in rent over recent years making the cost to change over between tenant and home owner a lot more attractive. Also with the many discounted house and land deals being offered by builders making it much more affordable for first time buyers.

On the other side though, apartments and townhouses have experienced a slowdown. Partly because of the flow over from projects reaching completion stages following the first home buyers booms from a few years ago plus the difficulties faced by developers to get their projects off the ground over the past 12 months. This is due to inability to achieve presales to trigger the development funding as well as suitable development sites becoming more difficult to secure.      


Jun 13
May 13 to Jun 13
Jun 12 to Jun 13
no.
% change
% change

TREND
Total dwelling units approved
13 427
0.1
4.4
Private sector houses
7 993
1.0
9.7
Private sector dwellings excluding houses
5 051
-1.5
-6.4
SEASONALLY ADJUSTED
Total dwelling units approved
12 778
-6.9
-13.0
Private sector houses
7 926
-1.2
9.9
Private sector dwellings excluding houses
4 543
-12.6
-37.4



Dwelling units approved
Graph: Dwelling units approved

Private sector houses approved
Graph: Private sector houses




JUNE KEY POINTS


TOTAL DWELLING UNITS

  • The trend estimate for total dwellings approved rose 0.1% in June and has risen for four months.
  • The seasonally adjusted estimate for total dwellings approved fell 6.9% in June and has fallen for two months.



PRIVATE SECTOR HOUSES

  • The trend estimate for private sector houses approved rose 1.0% in June and has risen for six months.
  • The seasonally adjusted estimate for private sector houses fell 1.2% in June after rising for five months.



PRIVATE SECTOR DWELLINGS EXCLUDING HOUSES

  • The trend estimate for private sector dwellings excluding houses fell 1.5% in June and has fallen for six months.
  • The seasonally adjusted estimate for private sector dwellings excluding houses fell 12.6% in June and has fallen for two months.



VALUE OF BUILDING APPROVED

  • The trend estimate of the value of total building approved fell 0.5% in June after rising for 16 months. The value of residential building rose 0.4% and has risen for four months. The value of non-residential building fell 1.7% and has fallen for two months.
  • The seasonally adjusted estimate of the value of total building approved fell 10.9% in June following a rise of 2.3% in the previous month. The value of residential building fell 0.7% and has fallen for two months. The value of non-residential building fell 23.2% following a rise of 8.0% in the previous month.