The number of home-building approvals rose by eight per cent in September, according to seasonally adjusted figures from the Australian Bureau of Statistics (ABS).
The rise was dominated by the multi-unit category, which is anything other than freestanding single-dwelling houses, and it rose by 18 per cent. This was dominated by New South Wales, where approvals were up by 23 per cent.
Approvals for free standing houses rose by just over one per cent in September, not quite enough to offset a similar-sized fall in August.
According to the bureau’s estimation, the trend in the number of housing approvals is virtually flat.
Housing is only part of the equation. The other part, less noticed when these monthly figures are released, is the non-dwelling sector ? shops, hotels, offices and the like.
This deceleration in growth in total activity also reflects an anticipated slump in apartment building and a fall off in the growth of heavy industrial projects while commercial construction is expected to pick up only slightly from recent flat levels.
The easing in growth in resources and infrastructure construction includes major road and mining construction projects while growth is expected to remain solid in the oil and gas sector.
Supply constraints including significant difficulties in the sourcing of skilled labour and capital are expected to continue to negatively impact the non-residential sector.
?While the construction sector is set to continue to provide a source of growth in the economy, our latest Construction Outlook survey highlights the difficult conditions continuing to face the non-resident construction industry nationally,? said Australian Industry Group chief executive Innes Willox.
?The expected deceleration of growth in the engineering construction sector will have ramifications up and down the supply chain. It is also an early warning of the need to build new sources of growth as the mining investment boom subsides.?
Sources: Industry Search, Australian Industry Group