Homeowners are becoming more inclined to renovate than build new homes, according to data released this week by the Australian Bureau of Statistics (ABS).
The latest figures show that the total number of approvals to build new dwellings fell 6.7 per cent in June (seasonally adjusted), following a 7.6 per cent fall in May and a 5.0 per cent fall in April.
The fall in June was driven by an 11.8 per cent drop in house approvals, while approvals to build apartments rose 0.8 per cent.
ABS Director of Construction Statistics Daniel Rossi said that since the unwinding of stimulus measures, approvals for private houses have fallen 20.9 per cent from a record high in April.
“Despite the fall, private house approvals remain at elevated levels and are 44.3 per cent higher than June 2020 and 37.6 per cent higher than June 2019", he added.
Across Australia, only two states reported rising approvals: Victoria (up 12.8 per cent) and South Australia (8.6 per cent). Elsewhere, the number of approvals fell in Western Australia (down 30.5 per cent), Queensland (18.4 per cent), Tasmania (14.9 per cent) and New South Wales (12.7 per cent).
The value of total residential building fell 2.3 per cent in May, in seasonally adjusted terms, comprising a 2.9 per cent fall in new building and a 2.0 per cent rise in alterations and additions.