Private sector houses and apartments see declines as non-residential approvals drive value growth
Building approvals in Australia fell in November, according to the latest data from the Australian Bureau of Statistics (ABS).
The seasonally adjusted estimate for the total number of dwellings approved dropped 3.6% in November, following a 5.2% rise in October.
The trend estimate for total dwelling approvals, which smooths out short-term volatility, rose 1.2%, after increasing by 1.5% in October.
Approvals for private sector houses continued to decline, with the seasonally adjusted estimate down 1.7% in November, after a 4.0% decrease in October. Approvals for private sector dwellings excluding houses, such as apartments, dropped sharply by 10.8%, following a 24.7% surge in October.
On a trend basis, private sector house approvals fell 0.5%, following a 0.2% decline in October. However, private sector dwellings excluding houses rose 2.9%, after a 3.6% increase in the previous month.
Building approvals were mixed across Australian states in November, based on seasonally adjusted data. Western Australia saw the largest rise, up 18.1%, followed by Queensland with a 7.3% increase. In contrast, Victoria (-12.9%), New South Wales (-9.9%), Tasmania (-4.2%), and South Australia (-1.6%) recorded declines.
Private sector house approvals decreased in most states, with New South Wales (-4.0%), Victoria (-3.9%), Western Australia (-2.1%), and South Australia (-1.3%) all falling. Queensland was the only state to see an increase, rising 4.3%.
Trend data showed that total dwelling approvals rose across all states and territories, led by the Australian Capital Territory (8.5%) and Northern Territory (5.1%). Private-sector house approvals increased in South Australia (2.2%) and Western Australia (0.3%), while declines were recorded in Victoria (-1.8%), Queensland (-0.9%), and New South Wales (-0.2%).
The total value of building approvals rose 6.6% in November to $14.32 billion, reversing a 2.3% decline in October. This growth was driven by an 18.4% jump in non-residential building approvals, which reached $5.96 billion, following an 11.2% drop in October.
In contrast, the total value of residential building approvals fell 0.5% to $8.36 billion. Within this category, the value of new residential buildings decreased 0.6% to $7.21 billion, while the value of alterations and additions increased slightly by 0.3% to A$1.15 billion.
On a trend basis, the total value of building approvals rose 1.2% to $13.94 billion, driven by a 2.4% increase in non-residential building ($5.60 billion) and a 0.5% rise in residential building ($8.34 billion).
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