Building approvals rebounded in September. The seasonally adjusted estimate for total dwellings approved rose 7.6 percent in September from August. Driven by a 16.6 percent increase in private dwellings excluding houses. Private sector houses rose 2.8 percent.
The value of total building approved rose 1.4 percent in September, in trend terms, and has risen for nine months. The value of residential building rose 0.5 percent, while non-residential building rose 2.5 percent shows data from the ABS.
“This improvement in approvals is a welcome reprieve from the declines that began in late 2017 and confirms that confidence is returning to the home building market. It remains too soon to confirm that we have passed the bottom of this cycle, but this result is another indication that the market is stabilising,” stated HIA Chief Economist Tim Reardon.
The gain was led by the property unit market – building approvals for new apartments rose by 16.1% in September. This was the second month in a row for an increase in high-density housing approvals. Detached house approvals also rose at a more modest rate of 2.7%.
“A range of indicators – house prices, lending and now building approvals – all indicate that Australia’s housing market recovery is gaining traction. Housing market conditions have a huge impact on confidence across our economy and today’s figures must be seen as very good news on that front,” says Shane Garrett, Chief Economist of Master Builders Australia.