The drop in building approvals in November was a little larger than market expectations centred on a fall around 1% (CBA(f):-1.0%). Approvals surged over 2013, with record numbers of apartment approvals recorded in September and October.So, some pull-back from these elevated levels does not come as a surprise. House approvals also lifted in 2013, but not byas much as apartments. The strong lift in house approvals in November indicates the stronger momentum building in thesector. The average size of an approval fell by 1.4% in November, but is 1.2% higher over the year. Approval sizes can bea good indicator of construction costs.
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Commonwealth Bank