Search ForexCrunch

Australian dwelling approvals moved lower in August, as they fell by 9.4% in the month, well below expectations (market median +1.0% and Westpac -2.5%), to be 13.6% below a year ago.

Key Quotes

“This comes on the back of a 4.6% decline in July, revised up a little from -5.2%.”

“The August result lends support to the Westpac view of a second leg lower in dwelling approvals – although we note the volatility of this data, month to month.”

“We expect high rise approvals to weaken, noting a sharp drop in site purchases in 2017. Investors, foreign buyers and developers are pulling back at this late stage of the cycle and with lending conditions tightening.”

“This contrasts to the first half of 2018, when new home building activity advanced, increasing by 3.2% in Q1 and rising by a further 3.6% in Q2. Total housing activity, including renovations, directly added 0.3ppts to overall economic activity over the first half of 2018.”