The total number of dwellings approved in Australia fell by 17% in seasonally adjusted terms in July, following a 0.6% decline in June and driven by a large drop in apartment approvals.
This was according to fresh data released by the Australian Bureau of Statistics (ABS).
“The decrease in the total number of dwellings approved in July was led by a sharp decline in approvals for private sector dwellings excluding houses, which dropped by 43.5%,” said Daniel Rossi, head of construction statistics at the ABS. “This was the lowest level recorded since January 2012 and was driven by a lack of approvals for large apartment developments. Approvals for private sector houses remained steady, rising 0.7% in June, following a 1.6% increase in June.”
Western Australia had the largest drop in the number of dwelling approvals at -36.9%. This was followed by Victoria at -17.4%, New South Wales at -16.2%, Tasmania at -14.5%, and Queensland at -13.7%. In South Australia, dwelling approvals rose 19.2%, in seasonally adjusted terms.
When it comes to private sector houses, only two states recorded a decline: Western Australia with -8.7% and NSW at -6.3%. In contrast, approvals for private sector houses rose in SA by 18.6%, Queensland by 5.8%, and Victoria by 1.5%.
ABS figures also showed a 12.9% fall in the value of total building approved, following a 6.2% decline in June. The value of total residential building fell 6.1%, consisting of a 6.9% drop in new residential building and a 1.3% decrease in alterations and additions.
The value of non-residential building fell 22.6%, driven by falls in both private and public sector approvals in July.
