The latest ABS data on monthly new dwelling approvals shows that approvals of both new detached dwellings and units across Victoria experienced strong recovery in November 2016. Total number of new dwellings approved recorded approximately 5,820, around 1,130 or some 24 per cent more than those approved in October 2016. Compared with the same period in 2015, total approvals grew by close to 1,350 or 30 per cent. Both of these two segments resumed positive growth in new approvals, following two consecutive months of net decline in September and October 2016.

Monthly new dwelling approvals
Total Victoria, houses and units, November 2014-2016

dwelling-approvals-as-of-100117Of note:

• The approvals of new units bounced back strongly in November last year. A total of 2,572 units or apartments were approved, up by 831 dwellings on October 2016 and 1,050 on November 2015. The rebound recorded in November was due to the strong recovery in approvals granted to larger apartment projects of four storeys or more, which recorded 1,364, compared to just 430 in October 2016. Units or apartments approvals returned to a level which was above the long-term average of around 1,760 dwellings per month. However, as the chart above suggests, units or apartments approvals will most likely remain highly fluctuant going forward.

• New houses approvals also recovered during the same period. The total number of new houses approvals recorded approximately 3,249, having grown by around 10 per cent on October 2016, or 10 per cent compared to a year earlier. Total detached house approvals have now reached 33,923 so far in 2016, up by 7 per cent on the first eleven months of 2015. This solid growth indicates that the greenfield residential market remained relatively healthy as population growth continues to be directed to the growth areas.

• Over the first eleven months of 2016 there have now been 61,142 new dwellings approved in Victoria, dipping slightly by 2 per cent on a year-on-year basis, due primarily to the cooling off in the unit and apartment segment which saw total approvals decline by around 12 per cent or close to 3,730 dwellings.