NSW Building Approvals for January 2022
NSW Approvals
December's jump in ex-houses approvals has given way to a lower number in January in NSW. Detached house approvals are also settling into a lower rate.
The latter is expected, with the HomeBuilder incentives bringing forward demand from those who intended to build their houses in the near future. That means a lower demand for new houses over the period that follows the incentives.
The low numbers ex-houses mean that the pipeline of apartment construction in Sydney isn't growing very rapidly (more clear from the chart below). Combined with a resumption of immigration, this locks Sydney's trajectory into potential shortages over the next few years.
NSW Approvals (6m Average)
About This Image These charts are based on data from the Australian Bureau of Statistics Building Approvals release. Seasonally adjusted values are used.