With finance increasingly hard to get and Sydney home prices still falling, the flow of new homes being approved for building continues to fall.
Latest ABS data shows 17,070 homes (seasonally adjusted) were approved in October, 1.5 per cent fewer than the previous month, 13.2 per cent fewer than October 2017. The monthly decline in approvals was driven by multi-unit homes, which fell by 5.4 per cent. Detached-home approvals rose 1.7 per cent.
APRA’s restrictions were designed to curb high-risk lending but ordinary buyers are now delayed getting finance. The credit squeeze emerging in the latter of half 2018 is playing a major role in slowing new-home building.