The latest ABS data on monthly new dwelling approvals shows that approvals of both new detached dwellings and multi units across Victoria dipped slightly in January 2017, due primarily to the holiday season which tends to see activity levels slow down. In seasonally adjusted terms, total number of new dwellings approved recorded some 6,020, around 330 dwellings or 5.3% less than those approved in December 2016. Compared with the same period in 2016, total approvals still experienced a year-on-year growth of around 90 dwellings or 1.5 per cent.

Monthly New Dwelling Approvals
Total Victoria, Houses and Units, Jan 2012-Jan 2017, seasonally adjusted

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Of note:

• The approvals of new units dropped declined in the first month of 2017 from the recent peak recorded for December 2016. A total of some 3,090 units or apartments were approved in seasonally adjusted terms, down by around 290 dwellings on December 2016 but up by 135 dwellings on January 2016.

• In the meantime, new houses approvals stayed relatively stable during the same period. The total number of new houses approved recorded approximately 2,930 dwellings, having declined marginally by around 1.5 per cent or 44 dwellings on December 2016, although approvals remained at a comparable level recorded a year ago.

• The decline was reflective of the slow-down in activity levels that usually occurs during the holiday period at the start of a year, in particular for multi units, although approval levels remained at a high level. Approval levels are likely to pick up in the following months, although approvals of units are more likely to continue to see volatility throughout the course of the year.

 
Note: According to the ABS, seasonal adjustment is a means of removing the estimated seasonal effects and calendar related variation from a series to recognise the effects of other influences more clearly. The ABS produces seasonally adjusted estimates for the monthly dwelling approvals data using a seasonal adjustment method which takes into account the latest available original estimates. State/territory series are adjusted independently of the national series and the sums are reconciled to equal to the national total estimates.