The trend estimate for total dwellings approved rose 0.1% in August and has risen for 19 months. The seasonally adjusted estimate for total dwellings approved fell 4.7% in August following a rise of 10.2% in the previous month.
PRIVATE SECTOR HOUSES
The trend estimate for private sector houses approved rose 0.6% in August and has risen for nine months. The seasonally adjusted estimate for private sector houses fell 1.6% in August following a rise of 2.7% in the previous month.
PRIVATE SECTOR DWELLINGS EXCLUDING HOUSES
The trend estimate for private sector dwellings excluding houses fell 0.1% in August and has fallen for three months. The seasonally adjusted estimate for private sector dwellings excluding houses fell 6.5% in August following a rise of 24.4% in the previous month.
VALUE OF BUILDING APPROVED
The trend estimate of the value of total building approved fell 0.4% in August and has fallen for three months. The value of residential building rose 0.2% and has risen for six months. The value of non-residential building fell 1.1% and has fallen for four months. The seasonally adjusted estimate of the value of total building approved rose 0.2% in August and has risen for two months. The value of residential building fell 2.3% following a rise of 2.3% in the previous month. The value of non-residential building rose 3.9% and has risen for two months.
The housing sector's recovery seems to be softening but economists are confident construction activity will strengthen later in the year.
Approvals for the construction of new homes fell 4.7 per cent across Australia in August, seasonally adjusted, the Australian Bureau of Statistics (ABS) said, worse than the one per cent fall the market was expecting.
However building approvals were up 7.7 per cent in the 12 months to August.
"Building approvals are very volatile month to month but nevertheless the trend has softened a little bit over the last couple of months," RBC fixed income and currency strategist Michael Turner said.
"Generally there's been enough of a tick up in approvals to suggest construction activity will pick up in the second half of this year".
In July there was a 10.2 per cent rise in building approvals, and before that a 6.5 per cent fall in June.
International trade figures were also released by the ABS on Wednesday, showing a deficit of $815 million in August, compared to a $1.375 billion deficit in July.
There appears to be a trend back towards house building rather than apartment building. Perhaps due to houses being so cheap.
From today's ABS building approvals data:
TREND - Aug 12 to Aug 13
Private sector houses - UP 10.2%
Private sector dwellings excluding houses - DOWN 1.8%
Cool story bro.
If these homes are so affordable, where are the FTBs gone?
Property acquisition as a topic was almost a national obsession. You couldn't even call it speculation as the buyers all presumed the price of property could only go up. That’s why we use the word obsession. Ordinary people were buying properties for their young children who had not even left school assuming they would not be able to afford property of their own when they left college- Klaus Regling on Ireland. Sound familiar?
The evidence of nearly 40 cycles in house prices for 17 OECD economies since 1970 shows that real house prices typically give up about 70 per cent of their rise in the subsequent fall, and that these falls occur slowly. Morgan Kelly:On the Likely Extent of Falls in Irish House Prices, 2007
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