Building approvals rise but the bubble may be about to burst

Peter Terlato 30 August 2016

Construction dwelling housing

A modest increase in July creates eight-month-long streak.

The total number of dwelling approvals continued to rise in July, up 0.2%, on the back of eight straight months of gains, according to the latest data.

The increase in dwelling approvals led the value of approved new builds to rise 1.9% in July, resulting in seven consecutive months of value growth, the Australian Bureau of Statistics (ABS) reported.

Private sector house approvals fell 0.5% in July, while private sector dwellings excluding houses rose 0.9%.

The trend estimate for total number of dwellings approved in New South Wales rose 2.4% in July. It's been gaining steam for the last eight months. Dwelling approvals in Victoria increased modestly, up 0.5% in July, continuing 11 months of consecutive increases.

Queensland, South Australia and Western Australia all experienced a 1.8% decrease in the trend estimate for dwelling approvals in July.

The greatest monthly decreases were recorded in Tasmania (-3.7%), the Northern Territory (-3.2%) and the ACT (-2.6%).

Earlier this month, APRA revealed both the value of housing investment and owner-occupied loans among Australian financial institutions increased in June.

While these results are mostly positive, some analysts anticipate a reversing trend in coming years.

The Housing Industry Association’s (HIA) latest National Outlook has forecast three consecutive years of decline for new home building. The industry body says new dwelling commencements hit their peak in 2015/16.

Latest home loan headlines

Picture: Shutterstock

Ask a Question

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Disclaimer: At we provide factual information and general advice. Before you make any decision about a product read the Product Disclosure Statement and consider your own circumstances to decide whether it is appropriate for you.
Rates and fees mentioned in comments are correct at the time of publication.
By submitting this question you agree to the privacy policy, receive follow up emails related to and to create a user account where further replies to your questions will be sent.

One Response to Building approvals rise but the bubble may be about to burst

  1. Default Gravatar
    | August 30, 2016

    This is really sad, Australian banks don’t really care what consumers want, only what makes them the most money.

Ask a question