Aside from engineering and architectural design, one of the earliest requirements of a building project is to obtain approval from the relevant statutory body. As a result, building approvals data is a leading economic indicator of future construction. While not all projects which have been approved are completed, all completed projects have been granted approval. Approvals data thus provides a useful indicator of future construction.
The latest building approval figures have been released by the Australian Bureau of Statistics and the month-to-month swings caused by volatile apartment approval numbers have continued. Total April approvals were 5.0% lower than March’s revised total and a little lower than the median forecast of -5.0%. On a 12-month basis and after revisions, total approvals were 1.9% higher.
House approvals increased by +0.7% in April while they were 11.3% higher on a 12-month basis. The corresponding figures for March after revisions were +1.5% for the month and +10.8% for the year. Apartment approvals are a lot more volatile (see chart below) and they dropped by 6.1% in April after a 6.1% increase in March. Compared to March 2017, apartment approvals were 8.2% lower.