NSW Building Approvals for May 2021

Despite the fall in building approvals today (see above for NSW), the last few of months have seen approvals ex-houses lift off their nadir last winter. Looking at their 6 month average figures (below), they are now getting close to three thousand per month. This is far short of the boomtime approvals in 2015 of circa four thousand. That boom led to falling or flat apartment rents. The question now is what level of non-houses construction is going to be "neutral" - maintaining supply and demand balance at current levels, and whether the current approvals are above or below that.

About This Image These charts are based on data from the Australian Bureau of Statistics Building Approvals release. Seasonally adjusted values are used.