Another month and another suggestion that building approvals declines may have ceased in Queensland

Posted on July 31, 2019 by Pete Faulkner - Building Approvals, QLD, Uncategorized

Last month we suggested that we may had seen the worst of the building approvals declines in Queensland (see here for that commentary) and the June data makes that analysis even more valid.

While approvalls fell 1.2% (seasonally adjusted) and 1.3% (Trend) for the month across the nation, for a 25.6% (s.a.) and 20.9% (Trend) year-on-year decline, the Trend data in Queensland (which is our preferred measure especially at the State level) showed a 3rd consecutive monthly improvement; albeit the improvement this month is tiny at +0.2% and for the three months is only 0.4%! Despite the improvements Trend declines over the year, at 27.4%, are worse than across the nation as a whole with house approvals down 20.9% and units down 37.6%.

For Queensland, which has seen bigger falls than other states, these numbers are hardly cause for celebration but they do at least make stronger the case to suggest that we may have seen a bottom; something that, at this stage, we cannot say for the national figures which continue to trend lower.