Dwelling approvals decline in October

The seasonally adjusted number of dwellings approved fell 12.9 per cent in October, following a 3.9 per cent fall in September, but still remained above pre-pandemic levels, according to data released today by the Australian Bureau of Statistics (ABS).

Daniel Rossi, ABS Director of Construction Statistics, said: “The decline in the total number of dwellings approved in October was driven by a large fall in approvals for private sector dwellings excluding houses, which fell 37.5 per cent.

“Private sector houses stabilised, up 4.3 per cent in October, following a 14.8 per cent fall in September. The series has been at historically elevated levels over the past year, largely driven by Government stimulus and record low interest rates. The October result remains 34.3 per cent higher than the pre-pandemic level in October 2019, despite slowing in recent months.”

Across Australia, the number of dwelling approvals fell in New South Wales (-29.4 per cent), South Australia (-8.1 per cent), Western Australia (-2.7 per cent), Victoria (-2.0 per cent) and Tasmania (-1.8 per cent). Queensland rose (2.2 per cent), in seasonally adjusted terms. The large fall in dwelling approvals for New South Wales was driven by a large decline in apartment developments approved in October.

Approvals for private sector houses rose in Western Australia (16.3 per cent), Victoria (6.4 per cent), Queensland (3.3 per cent) and New South Wales (0.7 per cent). South Australia fell (-3.3 per cent),  in seasonally adjusted terms.

The value of total building approved fell 15.1 per cent in October, in seasonally adjusted terms. The value of non-residential building fell 20.9 per cent, having fallen 10.4 per cent in September.

The value of total residential building fell 11.4 per cent, comprising a 13.5 per cent decrease in new residential building, and a 2.6 per cent rise in alterations and additions.

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About Warwick Petschack

Warwick has over 25 years of property investment and management experience. Principally responsible as Managing Director for Capital Management Australia and Joint Managing Director for Chauvel Capital Partners and Editor of Australian Property Markets News.

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