The ABS data on new dwelling approvals for April 2017 reveals that approvals for new detached dwellings remained steady whereas unit and apartment approvals declined further. The total number of new dwellings approved recorded approximately 4,777, around 668 less or -12.3 per cent than those approved in March 2017. Compared with the same period in 2016, total approvals also dropped by close to 1,020 dwellings or around -17.6 per cent. New dwelling approvals for multi-units continued its downward trend since the turn of the year.

Monthly New Dwelling Approvals

Total Victoria, Houses and Units, April 2013-April 2017, seasonally adjusted
ABS approvals 31 May 2017 M 550

Of note:
• The approvals of new units and apartments continued to drop in April. A total of 1,748 units or apartments were approved, down by 741 dwellings on March 2017 and 1,103 on April 2016. The low level of approvals granted to larger apartment projects of four storeys or more (667 dwellings for April compared to close to 1,800 for January) caused total multi-unit approvals to decline further.

• Although the subdued approvals for multi-units since the beginning of the year partly reflect the evolving market conditions, the large development pipeline which remains at a record high level is likely to be the reason behind the recent downturn. Given the cyclical nature of multi-unit dwelling approvals, it is not unlikely that the following months might see some level of recovery in the sub-sector.

• In comparison, new houses approvals continued with the steady pace. The total number of new houses approved recorded approximately 3,029 dwellings, having grown by around 2.5 per cent on March 2017, or 2.9 per cent compared to a year earlier. Over the past year to April 2017, total detached house approvals recorded 35,919 in seasonally adjusted terms, up by 2 per cent on the year ending April 2016. This indicates that the greenfield residential market remained relatively healthy, with solid demand being driven by continued population growth.

• In trend terms, a total of 66,891 new dwellings were approved in Victoria over the past year to April 2017, dipping slightly by 1 per cent on a year-on-year basis. Again, this was due primarily to the adjustment in the multi-unit sub-sector which saw total approvals decline by around 5 per cent or 1,626 dwellings over the same period.