The HomeBuilder program has been very positive for the detached
\nhouse sector, but the impact of this program is yet to be seen in ABS
\napproval data, HIA Chief Economist Tim Reardon says.<\/p>\n
\u201cThe lift in detached house approvals in July is more likely reflect building
\napplication lodgement and processing returning to normal after the shutdown,\u201d Mr Reardon said.<\/p>\n
The recent ABS Building Approvals data shows detached house approvals
\nare 2.8 per cent lower over the three months to July despite an 8 per cent
\nincrease in the month of July.<\/p>\n
From a very low base multi-unit approvals jumped 20.1 per cent in July,
\nbut approvals in the three months to July remain 35 per cent below the level
\na year earlier.<\/p>\n
\u201cThe number of multi-unit approvals during the three months to July was still
\nthe weakest three-month total since early 2012,\u201d added Mr Reardon.<\/p>\n
\u201cActivity in this part of the market is likely to remain subdued until there is
\ngreater certainty about the pathway for overseas migration to be restored.<\/p>\n
\u201cOver the past decade, metropolitan planning strategies have sought to
\nsupply a greater share of new housing within the existing urban foot print and
\nthe building industry has responded.<\/p>\n
\u201cAt the peak of the cycle, multi-unit dwellings accounted for half of all new
\nhomes approved.<\/p>\n
\u201cThere has been significant investment in building the capacity
\nof the industry to deliver the higher density dwelling types that planning
\nsystems have sought to provide.<\/p>\n
\u201cUntil there is clarity on when overseas migration is restored there
\nwill be an ongoing decline in multi-unit construction.<\/p>\n
\u201cConditions in the markets for new detached houses and new multi-unit
\ndwellings will continue to diverge.<\/p>\n
\u201cThe multi-unit market has been slowing since the start of 2018 and the
\ncessation of migration will compound this slowdown.<\/p>\n
\u201cThe detached market will benefit from HomeBuilder and several other
\nstate initiatives which will underpin work on the ground in the December quarter.<\/p>\n
“New Home Sales data suggests that detached house approvals will increase
\ntoward the end of the year,\u201d Mr Reardon said.<\/p>\n","protected":false},"excerpt":{"rendered":"
The HomeBuilder program has been very positive for the detached house sector, but the impact of this program is yet to be seen in ABS approval data, HIA Chief Economist Tim Reardon says. \u201cThe lift in detached house approvals in July is more likely reflect building application lodgement and processing returning to normal after the […]<\/p>\n