Building approvals are at a 2-year low.
In fact, only 849 units were approved in Sydney in November and a somewhat healthier 1,922 in Melbourne.
Annual approvals for attached dwellings are running at around decade lows in the major cities, and are sinking fast again in Brisbane.
Detached house approvals are falling away fast in all of the capital cities except for Adelaide, in the post-HomeBuilder stimulus environment.
- Also read:Perth housing market update | May 2024
- Also read:Adelaide housing market update | May 2024
- Also read:Sydney housing market update | May 2024
- Also read:Melbourne housing market update | May 2024
- Also read:Latest property price forecasts for 2024 revealed. What’s ahead in our housing markets in the next year or two?
Overall, there were just 13,898 dwellings approved in November on a seasonally adjusted basis, down 9 per cent from a month earlier, and down 15 per cent from a year earlier.
Annual approvals fell to 189,000 - the lowest level in 23 months, with the latest monthly figures suggesting that annual approvals are heading much lower.
The Housing Industry Association reported that interest rates have been lifted too quickly, and are now too high to allow the dwelling supply to respond to the growing population.
Meanwhile, population growth is set to hit a record high of more than 450,000 in 2023, driven by a strong rebound in Sydney and Melbourne.
