Quarterly residential building approvals in Victoria continue to be sluggish into the third quarter of 2019, despite a modest increase for the month of September.
While the number of approvals for new detached house approvals saw a 1.4 per cent increase in September, it remains insufficient to offset the 3.1 per cent fall for the quarter. This is even more pronounced for apartments and units, which saw a 7.1 per cent increase for the month of September but an overall 19.5 per cent fall for the same quarter.
The value of approved, major home renovation work corresponded with the volume of building approvals during the same period, with a 4.5 per cent increase for the month but an overall fall of 16.2 per cent for the quarter.
However, despite the persistent quarterly falls, the consecutive increases in building approvals for August and September, together with the recent rise in the median house price in Melbourne, may be an indication that the housing market is stabilising.
In contrast to the domestic sector, the commercial sector saw an increase of 4.4 per cent during the quarter in the total value of commercial building work approved. This is despite a pronounced fall during the month of 37.6 per cent.