Monthly data for new dwelling approvals released by the ABS shows that approvals of both new houses and units saw a month-on-month decline in September. The total number of new dwellings approved measured approximately 5,300, which is about 850 – or 14 per cent – fewer than were approved in September 2015. This halts a strong run of increased approvals through the first eight months of the year, particularly for units.

The dip in approvals of new units was particularly stark. Some 2,176 units were approved in September 2016, down 300 on August and 83 on September 2015. This decline was driven primarily by fewer approvals of larger apartment developments of four storeys or more, which declined by almost 500 units from the previous month and was down 24 per cent on the average of the past two years. However, this is a volatile segment of the market and can fluctuate significantly month-to-month.

Meanwhile, approvals of new detached houses were in line with the average of about 3,100 approvals per month so far in 2016. There have now been 27,700 detached house approvals in 2016 so far – up 8 per cent on the first nine months of last year, indicating the continued health of this market.

In the first nine months of 2016 there have now been 50,500 new dwelling approvals in Victoria, which is within 1 per cent of what was approved in the first nine months of 2015 and well above the equivalent period in 2014, indicating that the longer term trend is still positive.