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 will 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 they indicate total approvals leapt in November. Compared to October, total November dwelling approvals were 11.7% higher (after revisions). On a 12 month basis, total approvals were 17.1% higher than in November 2016 (after revisions).
House approvals fell by 2.8% in November, which translates to a 1.2% rise over the previous 12 months. Apartment approvals are a lot more volatile (see chart below) and they jumped by 28.7% for the month and they were 5.8% higher than November of last year.