Approvals for dwellings, that is apartments and houses, had been heading south since mid-2018. As an indicator of investor confidence, falling approvals represent a worrying signal, not just for the building sector but for the overall economy. November’s figures represented a substantial turnaround and now December’s figures have lent weight to some economists’ forecasts of a recovery in 2020.
The Australian Bureau of Statistics has released the latest figures from December and total residential approvals fell by 0.2% on a seasonally-adjusted basis, a smaller fall than the 5% contraction which had been expected but a noticeable turnaround from November’s revised figure of +10.9%. However, on an annual basis, total approvals increased by 2.7%, an improvement on November’s comparable figure of -2.8% after revisions.
Westpac senior economist Matthew Hassan said one-off factors may have padded the figures to some extent. However, he also noted the report did contain “some hints of firming elsewhere.”
