Australian Building Approvals Show Signs of Recovery, But Still Short of Pre-Recession Levels

A recent release from the Australian Bureau of Statistics (ABS) indicates that the housing sector is showing signs of improvement, with a rise in residential building approvals in March. However, this growth is still mostly driven by green shoots, which, although promising, are not yet enough to signal a full recovery. The total value of building approvals remains lower than pre-recession levels, and the non-residential sector continues to struggle.

Key Takeaways:

• Residential building approvals rose by 3.5% in March, with their value increasing by 1.2% due to additions and alterations.
• The seasonally adjusted number of residential approvals was up for the second consecutive month, but still down 16.5% from a year ago.
• Non-residential approvals decreased by 9.8% in March, following a 19.3% increase in February, due to a decline in construction activity.
• The total value of approvals was down 3.5% in March and 25% from a year ago, indicating a persistent slump in the non-residential sector.
• The ABS notes that while there are positive signs in the housing sector, it is still too early to predict a full recovery, and the economy remains in a recession.

Statistics:

• The number of residential building approvals rose by 3.5% in March, while their value increased by 1.2%.
• The total value of residential approvals decreased by 16.5% from a year ago.
• Non-residential approvals decreased by 9.8% in March, after a 19.3% increase in February.
• The total value of approvals was down 25% from a year ago.
• The January/February average for non-residential approvals was slightly higher than the March level, but 33% lower than a year earlier.

Sources:

• Australian Bureau of Statistics (ABS): No specific date mentioned in the original text.