The total number of dwellings approved in Australia decreased by 6.1% in August, totaling 13,991, following an 11.0% increase in July, according to fresh data released by the Australian Bureau of Statistics (ABS).
Daniel Rossi, head of construction statistics at ABS, stated, “The decline was primarily driven by a 16.5% fall in approvals for private dwellings excluding houses, following a July increase.” He added that approvals for private sector houses continued to show slowing growth, rising 0.5% in August.
Private House Approvals Vary by State
Private sector house approvals rose by 0.5%, reaching 9,338 dwellings, and are now 8.4% higher compared to August 2023.
New South Wales reported the most significant increase among the states at 3.9%.
Western Australia also maintained upward momentum, approving its highest number of private houses since June 2021.
Significant Drop in Apartment Approvals
In contrast, approvals for private sector dwellings excluding houses fell by 16.5%, totaling 4,418 dwellings, which represents a 6.1% decrease from the previous year.
This decline was primarily attributed to a drop in high-density apartment approvals, with only 1,214 apartments in nine or more storey blocks approved in August, down from 2,504 in July.
Residential Building Value Declines
The value of total building approvals decreased by 0.2%, amounting to $13.25 billion, after a notable 6.9% rise in July.
The total value of residential building approvals fell by 6.7% to $7.96 billion, largely due to a 7.9% decrease in the value of new residential building approvals, which reached $6.81 billion.
However, alterations and additions increased by 1.4%, totaling $1.14 billion in seasonally adjusted terms.
Conversely, the value of approved non-residential buildings rose significantly, increasing by 11.5% to $5.30 billion, following a 2.8% rise in July.