Approvals down

Despite a drop in November, building approvals are still higher than last year, according to seasonally adjusted data released this week by the Australian Bureau of Statistics (ABS).

The latest figures show that the total number of homes approved fell 3.6 per cent in November to 14,998, following a 5.2 per cent rise in October.

The November result was impacted considerably by multi-unit dwellings, though the fall was evident across all residential building types. Approvals for standalone houses fell 1.7 per cent, while ‘dwellings excluding houses’ dropped 10.8 per cent.

ABS head of construction statistics Daniel Rossi observed that, despite the fall, total dwelling approvals remain 3.2 per cent higher than November 2023.

The 1.7 per cent fall in house approvals across Australia (to 9,028 dwellings), follows a 4.0 per cent fall in October. Despite this, approvals for houses remain 3.8 per cent higher than a year ago. Queensland was the only state to see growth in November, with a 4.3 per cent rise.

Approvals for multi-unit dwellings fell 10.8 per cent (to 5,285), which was 6.4 per cent lower than a year ago. The result was driven by a large fall in apartment approvals in New South Wales and Victoria, following a strong October result.

The total value of residential building fell 0.5 per cent (to $8.36 billion), made up of a 0.6 per cent fall in the value of new residential building approved ($7.21 billion) and a 0.3 per cent rise in alterations and additions ($1.15 billion), in seasonally adjusted terms.