The June Building Approvals data for June released today by the ABS show total approvals fell (seasonally adjusted) by 8.2% on the month for a 8.6% increase over the year (this down from +18.3% last month). Market expectations had centred around a 0.8% decline. However, after last month’s numbers being so strong on the back of volatile unit approvals (see our commentary here), it is perhaps not surprising that much of that has reversed out this month with unit approvals falling 19.5% on the month. House approvals actually increased by 4.0%.
The Trend series, which should “iron out” much of this unit/house volatility, fell 1.2% on the month (with May revised slightly lower) for a 14.4% increase for the year (this down from 16.1% last month). As the chart below makes clear, the rapid increases seen in approvals nationwide have slipped in recent months.
In Queensland we see a generally more positive picture. Here total approvals rose 16.3% (seasonally adjusted) for a 28.0% increase on the year (this after a 4.5% annual fall last month on the back of freakishly strong May 2014 data) with both house (+13.3%) and units (+19.0%) up strongly on the month. The Trend series in QLD shows us a 0.2% increase for the month with an annual increase of 15.9% (down from +19.4% in May).
Regional building approvals data will be released next week.