Border closures push unit approvals to an 11-year low

first_imgApartment approvals hit an 11-year low with border closures proving to b e a real dampener for foreign and inter-state buyers. Picture: Mark Cranitch.Apartment approvals have hit an 11-year low, with border closures causing a double digit fall in dwellings data in May – with Queensland emerging least scathed of all the states. Latest Australian Bureau of Statistics figures showed the number of dwellings approved dropped -16.4 per cent seasonally adjusted in May, with Queensland emerging the best of a depressed bunch with a 7.4 per cent decline, followed by Western Australia (-8.9 per cent) and South Australia (-9.3 per cent). 10,000 more chances to get into first home sooner Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 2:56Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -2:56 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels540p540p360p360p270p270pAutoA, selectedAudio Tracken (Main), selectedFullscreenThis is a modal window.Beginning of dialog window. Escape will cancel and close the window.TextColorWhiteBlackRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentBackgroundColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentTransparentWindowColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyTransparentSemi-TransparentOpaqueFont Size50%75%100%125%150%175%200%300%400%Text Edge StyleNoneRaisedDepressedUniformDropshadowFont FamilyProportional Sans-SerifMonospace Sans-SerifProportional SerifMonospace SerifCasualScriptSmall CapsReset restore all settings to the default valuesDoneClose Modal DialogEnd of dialog window.This is a modal window. This modal can be closed by pressing the Escape key or activating the close button.Close Modal DialogThis is a modal window. This modal can be closed by pressing the Escape key or activating the close button.PlayMuteCurrent Time 0:00/Duration 0:00Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:00 Playback Rate1xFullscreenCOVID-19: Spring property predictions 202002:57 There were massive falls in the south which hit double-digit falls in Tasmania (-23.3 per cent), Victoria (-14.3 per cent) and New South Wales (-11.3 per cent).The value of residential building approvals was down -17.3 per cent in May. ADB construction services director Daniel Rossi said private sector dwellings excluding houses drove the decline, falling -34.9 per cent which was an 11-year low for apartment buildings.“While minor effects of COVID-19 are apparent in the headline Building Approvals results, the fall in apartment approvals was broadly expected prior to the COVID-19 pandemic,” he said. MORE: Brisbane home values slip Queensland had the highest drop in approvals for private sector houses (-9.9 per cent). Picture: Darren England.Queensland had the highest drop in approvals for private sector houses (-9.9 per cent), Western Australia (-7.9 per cent) and Victoria (-3.9 per cent).Two states defied the downward trend for houses, with South Australia rising 7.1 per cent and New South Wales up 1 per cent.One of the nation’s biggest housing sector lenders, the Commonwealth Bank, expects approvals figures to continue to deteriorate over the second half of 2020 “as border closures reduce demand for housing”.More from newsCOVID-19 renovation boom: How much Aussies are spending to give their houses a facelift during the pandemic3 days agoWhizzkid buys almost one property a month during COVID-197 days ago“Building Approvals data can be extremely volatile, and the large 16.4 per cent fall in May is evidence of that, but was not unexpected,” according to CBA senior economist Belinda Allen. “We had expected a larger than consensus fall of 10 per cent (consensus ‑7.8 per cent). We do expect further weakness from here. Rolling annual approvals are now running at 173k, down from 192k a year ago and a peak of 243k in August 2016.”“Border closures leading to lower net overseas migration and a general level of uncertainty is reducing the demand for housing. We expect new housing construction to fall 25 per cent in 2020.”The largest falls has been in multi‑unit approvals for four story buildings or higher, CBA said, with shorter building approvals holding up better. FOLLOW SOPHIE FOSTER ON FACEBOOKlast_img

Leave a Reply

Your email address will not be published. Required fields are marked *