The latest building approvals data for Victoria has been released, showing an overall decline in approvals, with apartments/units driving the condition. The decline reflects a weaker housing building sector caused by falling house prices, the royal commission into banking, and the uncertainty of the status of housing policy after the coming election in May.
- Total monthly and quarterly building approvals for December 2018 fell by 8.1 per cent and 1.3 per cent respectively, with apartments/units driving this fall.
- Apartment/unit approvals fell by 24.2 per cent for the month of December and 7.1 per cent for the December quarter.
- Building approvals in Victoria for 2018 totalled 15,903 – 3 per cent less compared to 2017. Total apartment/unit approvals fell by 14.4 per cent compared to 2017; however approvals for houses saw a total increase of 7.2 per cent from 2017.
December 2018 saw a total of 4,664 building approvals which translates to a quarterly total of 15,698 building approvals. This marks a monthly decrease of 8.1 per cent and a quarterly decrease of 1.3 per cent. Apartments have been the main driver for the monthly and quarterly decline, in which it saw a monthly decline of 24.2 per cent and a quarterly decline of 7.1 per cent.
Despite the overall decline in building approvals, houses remain positive, with 3,225 approvals for the month of December (+1.5 per cent) and 9,800 for the December quarter (+2.6 per cent).
The total number of building approvals for Victoria in 2018 was 15,903 – 3 per cent less compared to 2017 with the decline driven by the fall in apartments and units (-14.4 per cent). Nevertheless, against this backdrop of falling apartment/unit approvals, total house approvals grew in 2018 (+7.2 per cent).