Decline in apartment approvals drives the fall
The total number of dwellings approved in Australia experienced a notable 9.5% decline in December, in seasonally adjusted terms, reversing the 0.3% rise observed in November, according to the latest data released by ABS.
Daniel Rossi, head of construction statistics at ABS, highlighted that the December decline was primarily steered by a substantial 25.3% fall in approvals for private sector dwellings excluding houses.
“In 2023, there were 59,174 private other dwellings approved, compared to 73,041 in 2022,” Rossi said. “This reflects a 19% annual fall. Approvals in less volatile, private sector houses, fell 0.5% in December.”
Breaking down the regional impact, total dwelling approvals took a hit in Victoria (-18.4%), South Australia (-11.8%), and Tasmania (-2.7%). Conversely, there were increases in Queensland (8.2%), Western Australia (7.9%), and New South Wales (2%).
Analysing approvals for private sector houses, South Australia (-5.3%), New South Wales (-2.6%), and Queensland (-0.4%) experienced declines, while Western Australia (2.2%) and Victoria (1.2%) saw modest increases in December.
The overall value of total building approved witnessed a 6.4% decrease, following a sharp 10.4% drop in November. Within this, the value of total residential building fell by 3.7%, with a 3.8% decrease in new residential building and a 2.8% fall in alterations and additions.
Non-residential building approvals were not immune to the trend, with the value falling by 10.6% in December, following a substantial 19.8% fall in November, ABS reported.
For more detailed information, refer to the Building Approvals, Australia report.
To compare the latest figures with previous ABS data, click here and here.
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