Falling Approvals Add To Shortage

Further decreases in dwelling approvals are likely to exacerbate the shortage of homes which is pushing up rents.

 

ABS data shows dwelling approvals recorded their third consecutive month of decline in November. The 9% decline in the number of dwellings approved follows a 5.6% fall in October. Overall, total dwelling approvals have fallen 22% since August.

 

Tasmania and South Australia have gone against the trend, reporting increases in approvals in November.

 

Daniel Rossi, ABS head of construction statistics, says the November result was driven by a 23% decrease in approvals for apartments, while approvals for houses fell 2.5%.

 

The value of total building approvals fell 1.5% in November, following a 0.4% decrease in October.

 

But the value of non-residential building approvals remained strong, increasing 2.0%, following a 2.3% rise in October.

 

Three months of falling home building approvals enhances the nation’s dwelling shortage, which is most evident in the rental markets, with vacancies 1% or lower in most parts of the nation.

 

With such a limited number of properties available, if you’re interested in putting your property on the rental market in Victoria, then please contact our property management team. We manage over 600 properties in Victoria and can help you benefit from a managed property.

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