The latest ABS data on Victorian building approvals has been released today.

Key highlights

• 3275 houses and 2118 multi-unit dwellings were approved in June 2018.
• The quarterly total for approvals in houses and multi-unit dwellings as of June 2018 totaled 10,033 and 7,209 respectively (a decrease of 4.5 per cent and 18.8 per cent respectively compared to the previous quarter).
• Nevertheless, yearly total of building approvals remains strong. The total number of approvals for houses in the past year as of June 2018 totaled 39,807 (up 10.9 per cent compared to the previous year). Total number of approvals for multi-unit dwellings totaled 35,967 (up 22.3 per cent compared to the previous year).

The data reveals that on June 2018, 3275 houses were approved, resulting in a three-month total of 10,033 for houses – a decrease of 4.5 per cent compared to the previous three months. For multi-unit dwellings, there were a total of 2118 building approvals, resulting in a three-month total of 7209 for multi-unit dwellings – a decrease of 18.8 per cent compared to the previous three months. This marks a total decrease of 11 per cent in building approvals for residential dwelling in the last three months as of June 2018 compared to the previous three months.   

Nevertheless, the 12-month total as of June 2018 for the two dwelling types remains strong. The total number of approvals for houses in the last 12 months totaled 39,807, whereas multi-units totaled 35,967. This is an increase of 10.9 per cent for houses and an increase of 22.3 per cent for multi-units respectively compared to the previous 12-month total in June 2017. Together, this is a yearly total of 75,774 for all residential dwelling types – 16 per cent higher than the previous 12 months (65,304).

Past trends show the number of approvals in houses and multi-units converging, with the current number of approvals in the last 12 months showing houses and multi-unit dwellings making up 53 per cent and 47 per cent of total building approvals respectively. This depicts the increasing pattern towards urban density in Victoria in the midst of a growing population. However, with industry forecasts showing a drop-off in apartment commencements from 2018-19 onwards, it remains to be seen if this trend continues.