October Building Approvals from the ABS today shows a 12.6% drop m/m (-24.9% yr/yr) seasonally adjusted. The decline is being driven largely by units (-23.5% m/m and -41.8% yr/yr) while house approvals fall relatively more gradually (-2.5% m/m and -4.5% yr/yr). It would certainly suggest that the peak in unit approvals has now passed, although as the chart below makes clear, we are still at relatively healthy levels of approvals overall. The less volatile Trend series shows a 3.3% m/m decline and 7.2% drop yr/yr (Sept was revised weaker to a 4.5%% yr/yr decline).
In Queensland the divergence between house and unit approvals is even more marked. Total approvals fell 9.8% m/m (seasonally adjusted) and were down 17.1% yr/yr. However, house approvals actually rose 3.7% m/m and are up 5.5% yr/yr while units have fallen 25.9% m/m and by 38.8% yr/yr. The less volatile Trend series shows a 3.6% m/m decline and 16.4% drop yr/yr.
Conus Trend Building Approvals for all the Queensland SA4 regions will be released after the ABS regional data next Wednesday.