Dwelling approvals bounce back in August

The number of dwellings approved rose 6.8 per cent in August (seasonally adjusted), ending a run of four consecutive monthly declines, according to data released today by the Australian Bureau of Statistics (ABS).

Daniel Rossi, ABS Director of Construction Statistics, said: “The increase in the total number of dwellings approved in August was driven by approvals for private sector dwellings excluding houses, which rose 13.7 per cent. Private sector houses also rose, by 3.5 per cent. 

“The August result indicates that approvals for detached housing remain strong despite the unwinding of stimulus measures in April and the on-going lockdowns in New South Wales and Victoria. Driven by record low interest rates, increased household savings and confidence in the housing market, private house approvals are 23.8 per cent higher year on year and 42.0 per cent higher than August 2019.” Mr Rossi said.

Across Australia, the number of dwelling approvals rose in Western Australia (21.0 per cent), South Australia (11.8 per cent), Victoria (10.5 per cent) and Queensland (4.0 per cent), in seasonally adjusted terms. Falls were recorded in Tasmania (-18.9 per cent) and New South Wales (-2.3 per cent).

Approvals for private sector houses rose in South Australia (16.6 per cent), Victoria (8.1 per cent) and New South Wales (7.0 per cent). Western Australia (-7.3 per cent) and Queensland (-5.2 per cent) both fell in seasonally adjusted terms.

The value of total building rose 20.3 per cent, in seasonally adjusted terms. The value of non-residential building rose 43.8%, having fallen 30.6% in July. The rise in August was driven by a strong increase in private sector approvals.

The value of total residential building rose 9.2%, comprising a 9.0% increase in new residential building, and a 10.0% rise in alterations and additions. The value of approvals for alterations and additions rose to the second highest level recorded, behind April 2021.

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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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