Reports of a home building revival are misleading and premature

The ABS reported a sharp increase in dwellings approved over November compared to October.

Capital city building approvals increased by 19.7% to 11,781 – the highest monthly result since May.

November’s sharp increase however reflected the previous months low result of 9840 dwelling approvals - the lowest since January.

Surging unit approvals were a major contributor to November’s increase – up by 1811 or 47.1% over the month.

Sydney unit approvals increased by 2019 to 2859 with Brisbane up by 244.

This was offset by a 597 fall in Melbourne approvals.

The surge in Sydney monthly totals was largely a result of 940 November approvals in the suburb of Parramatta.

Monthly dwelling approvals can be volatile due to the size of individual unit projects.

Despite November’s sharp increase, capital city dwelling approvals remain 21.9% lower over the first 11 months of 2019 compared to the same period in 2018 with unit approvals down 28.4%.

There is still a long way to go...

And a sustained revival is largely dependent on finance availability to developers and investors from a still gun-shy banking sector – courtesy of previous APRA polices.

About Dr. Andrew Wilson Dr Andrew Wilson, Chief Economist of www.MyHousingMarket.com.au is widely regarded as Australia’s leading property economist.