Australia building approvals Oct 2014

Australian building approvals surged by 11.4% in October, completely reversing a 11.2% decline in October, with the annual rate of change ticking up to 2.5% from 11.5% seen previously. As has been the case for many years multi-unit approvals were the chief catalyst behind the surge, rising 30.4% on month after sliding 24.1% in September.

Australia unit approvals Oct 2014

While the change in the headline figure screams strength, the reality is quite the opposite, at least looking ahead, with total unit approvals lower than what they were a year ago while housing approvals, a more stable indicator, have been trending lower, albeit still in positive territory, for the best part of a year.

Australia unit and housing approvals YY Oct 2014

In what will no doubt create increased volatility in the series ahead the percentage of unit to housing approvals continues also to narrow.

Australia unit and housing approvals percentage Oct 2014

Thanks to the slight slowdown in unit approvals over the past year total approvals look to have peaked, albeit at elevated levels compared to the past decade.

Australia unit and housing approvals total Oct 2014

While total approvals are easing it’s clear that the value is not with the total value of approvals rising to $4.963b in October, the second highest level in the history of the survey.

Australia approvals VALUE Oct 2014

To view the full report from the ABS follow this link:

http://www.ausstats.abs.gov.au/ausstats/meisubs.nsf/0/52CE9EF51701DF77CA257DA1000F4015/$File/87310_oct%202014.pdf

 

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