Australia: Non-residential building approvals eclipse 2014 peak – Westpac

The Australian non-residential construction sector is enjoying better times in 2017, according to Andrew Hanlan, Senior Economist at Westpac.

Key Quotes

“Turning to non-residential building (referred to as building), there is positive news as well, underpinned by robust population growth and a lift in public investment.”

“Notably, building approvals have trended higher for the past two years. The capital stock is set to expand to meet the needs of a growing population, as well as to service rapid growth in both international tourism and foreign student numbers.”

“As at May 2016, the 12 month sum of building approvals was 9% above that for the previous year. Move forward to May 2017 and approvals advanced by a further 13%. In dollar terms, total approvals for the year to May 2017 were valued at $40, an increase of $4.6bn on the previous 12 months.”

“For May 2017, total approvals for the 12 months are 3.8% above the earlier peak of February 2014. Approvals for private building projects have eclipsed the 2014 peak by 2%, while approvals for public projects have increased by 9% over this period.”