Dwelling Approvals Decline In June: Australia

The total number of dwellings approved fell 6.5 per cent in June to 13,237, after a 5.7 per cent rise in May, according to seasonally adjusted data released today by the Australian Bureau of Statistics (ABS).

Daniel Rossi, ABS head of construction statistics, said: "Over the past 12 months, there have been a total of 162,892 dwellings approved, compared to 177,936 in the 12 months prior, representing a 8.5 per cent decrease, in original terms. This is the lowest number of dwellings approved on a financial year basis since 2011/12."

Private sector houses driven down by NSW

"Private sector houses fell by 0.5 per cent in June. The fall was mainly driven by New South Wales which fell 19.0 per cent. With the latest figure of 1,597 private houses approved, this is the lowest recorded figure for New South Wales since January 2013." Mr Rossi said.

Material and labour shortages continue to impact the housing sector, with the average approval value for new houses rising by $19,444 between June 2023 and June 2024.

Private sector dwellings excluding houses near 12-year low

"Private sector dwellings excluding houses fell by 19.7 per cent in June, reaching the second lowest monthly level recorded since January 2012. The June figure represents a yearly fall of 22.1 per cent compared to the same month last year. Conditions for apartments remain challenging owing to high construction costs and higher interest rates."

In original terms, there was 29,388 apartment units approved in the 12 months to June 2024, compared with 40,443 in the previous 12 months.

(a) Seasonally adjusted estimates are not published for NT and ACT for all dwelling types. Private sector houses are not published for Tasmania.

Building value fall driven by non-residential building

The value of total building approved fell 7.0 per cent to $12.06 billion in June, following a 0.4 per cent rise in May. The biggest driver of the fall was in non-residential building which fell 16.2 per cent (to $4.46 billion).

Total residential building value fell by 0.6 per cent to $7.61 billion, following a 2.7 per cent rise in May. The value of new residential building fell 2.3 per cent (to $6.44 billion).

Meanwhile, the level of residential alterations and additions reached an all-time high of $1.17 billion in June, rising 10.2 per cent in seasonally adjusted terms.