Australia's boom apartment market continues to drive building approvals, according to Master Builders Australia MBA’s chief executive Wilhelm Harnisch says the small rise in approvals is mainly driven by the apartments market.
“The more important data is the apparent levelling out of the private sector housing market.
“This data indicates that the rate of growth in this segment of the new housing market may have peaked, or is close to peaking, in the current cycle.”
Harnisch says it is important to note that the approvals pre-date the November 2003 rate rise.
Seasonally adjusted, the total number of dwelling units rose by 1.6% to 16,364 units but was 5.7% lower than last year.
Private sector house approvals were flat at 10,521 dwelling units and were 9.2% higher than the same time last year.
“Private sector house approvals remain close to the peak recorded in August 2002 although other dwelling approvals remain well below the peak approved in October 2002.”
Harnisch says the value of non-residential approvals (commercial buildings) rose by 5.7% in October but this was not unexpected given the large fall recorded last month.
“The total value of all building approvals is now above the peak of August 2002 when the first home owners’ grant boosted residential approvals.”
