Australia’s dwelling approvals: Lift falters – Westpac

In the view of the analysts at Westpac, unwinding high-rise spike dominate what looks to be a very gradual upswing in Australia’s non-high rise approvals.
Key quotes:
“Dwelling approvals posted a much sharper than expected pullback in Jan as a spike in high rise approvals unwound and bushfire effects dragged at the margin. The consensus had been looking for a 1% gain. Westpac was forecasting a flat result with a high-rise pullback expected to neutralize a gradual uptrend in non-high rise.
Note that monthly volatility is always an issue with approvals, especially in the Jan month. Double-digit monthly swings are reasonably common due to the lumpy nature of 'multi-dwelling' high rise approvals. The larger seasonal adjustments applied in Jan also act to amplify any volatility.
The detail confirms the broad thinking behind our 'flat' call but with a sharper pullback in high rise approvals and a more muted upswing in non-high rise. It also suggests direct effects from bushfires in regional areas of NSW, Vic and SA in Dec-Jan have been minimal.”
Author

Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

















