Building approvals fall, with detached housing starting the HomeBuilder unwind

The total number of new residential building approvals fell 7.1% in May after last month’s 5.7% decline.

This was due to a fall in private sector house approvals, but these came off the back of the record high in April.

HomeBuilder and other state-based programs have provided extensive support to the housing sector, particularly for detached housing.

Since June 2020, 143,000 private detached houses have been approved, the highest number of approvals over a 12 month period since 1984.

With new contracts now no longer eligible for the HomeBuilder scheme since the end of March, it is conceivable that the level of dwelling approvals will soften (possibly sharply) from here.

Approvals remain at a very high level, up 52.7% over the last year and 24% above their pre-pandemic peak.

However, more steep declines can be expected as the unwind continues in the coming months.

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from Property UpdateProperty Update https://propertyupdate.com.au/building-approvals-fall-with-detached-housing-starting-the-homebuilder-unwind/