The March ABS data on new dwelling approvals shows that approvals of both new detached dwellings and units and apartments across Victoria edged down slightly over the month. The total number of new dwellings approved recorded approximately 5,433, around 55 or around 1 per cent less than those approved in Feb 2017, as shown in the chart below. Compared with the same period in 2016, total approvals declined by close to 385 dwellings or -6.6 per cent. Both of these two segments remained at the level of activity experienced for the previous month and are considered relatively stable.

Monthly New Dwelling Approvals
TOTAL VICTORIA, HOUSES & UNITS, MARCH 2013 – MARCH 2017, SEASONALLY ADJUSTED

We note:

• The approvals of new units remained at the level comparable with that of Feb 2017, following the most recent peak recorded in Dec 2016. In seasonally adjusted terms, a total of 2,527 units or apartments were approved over the month, down by 45 dwellings on Feb 2017 but up by 42 dwellings on Feb 2016. The subdued approval data recorded in March was due to the strong adjustment in approvals granted to larger apartment projects of four storeys or more, which recorded around 875 dwellings, further declining by over 35 per cent from February. Units or apartments approvals have been on the downward trend since the peak in Dec 2016. As available plots for larger projects (i.e. 4-storey and above apartment buildings) dwindles, in particular in Inner Melbourne, approvals for these projects are also likely to continue to decline over time.

• In comparison, new houses approvals remained relatively stable during the same period. The total number of new houses approved recorded approximately 2,906 dwellings, compared with 2,916 dwellings for the previous month.

• Over the past 12 months to March 2017 there were 67,887 new dwellings approved in Victoria (35,813 for houses and 32,074 for units and apartments), dipping marginally by around 169 dwellings. Total approvals for houses grew by 516 dwellings or 1 per cent, whereas approvals for units and apartments were down by 685 dwellings or 2 per cent.