Building approvals in Australia fell by 6.1% in August 2024, marking a significant reversal from an 11% increase in July, according to data released by the Australian Bureau of Statistics on Wednesday.
The total number of approved dwelling units fell to 13,991, largely driven by a sharp 16.5% drop in private sector dwellings excluding houses. However, private sector house approvals rose by a modest 0.5%, reaching 9,338.
The value of total residential building approvals declined by 6.7% to A$7.96 billion, reflecting a 7.9% drop in new residential buildings.
On the other hand, non-residential building approvals surged by 11.5%, reaching $5.30 billion.
Building approvals for total dwellings decreased across all Australian states in August. New South Wales and South Australia experienced the largest declines, with approvals falling by 11.5% in both states.
Other states saw smaller decreases, including Tasmania (-4.4%), Queensland (-3.9%), Western Australia (-3.3%), and Victoria (-3.0%).
In terms of private sector house approvals, New South Wales saw a strong rise of 3.9%, while Western Australia and Victoria also posted gains of 1.9% and 1.4%, respectively. However, South Australia and Queensland experienced declines of 4.0% and 3.9%.
The total value of building approvals in Australia fell by 0.2% to $13.25 billion in seasonally adjusted terms, following a 6.9% rise in July. The decrease was driven by a 6.7% fall in residential building approvals, while non-residential building approvals saw an 11.5% increase.
In trend terms, the value of total buildings approved increased by 0.4%, with residential building approvals rising by 1.0%. Non-residential building approvals, however, saw a 0.4% decline.