Growth driven by rise in private sector dwellings excluding houses
The total number of dwellings approved in Australia rose by 5.5% in May, following a 1.9% increase in April, according to seasonally adjusted data released by the Australian Bureau of Statistics (ABS).
“The rise in approvals in May was driven by private sector dwellings excluding houses which rose 16.3%,” said Daniel Rossi, ABS head of construction statistics. “Private sector house approvals also rose by 2.1%.”
All states experienced an increase in total dwelling approvals, with Western Australia leading at 19.6%. Victoria followed with an 8.9% increase, Queensland with 6.3%, South Australia with 4.1%, Tasmania with 3.8%, and New South Wales with 2.9%.
The latest ABS building approvals data also showed that in terms of private sector house approvals, Western Australia saw an increase of 8.4%, New South Wales recorded a 5.9% rise, and Queensland a 3.7% hike. However, Victoria experienced a decline of 3.4%, while South Australia saw a decrease of 1.9%.
Meanwhile, the value of total building approvals rose by 0.6% to $13 billion, reversing a 0.7% fall in April. The value of total residential building approvals increased by 2.3% to $7.6 billion, driven by a 4.4% rise in new residential buildings, despite a 9.3% decline in alterations and additions.
The value of non-residential building approvals fell by 1.6% to $5.4 billion, following a 0.7% rise in April.
The ABS data indicates a robust performance in the Australian construction sector, particularly in private sector dwellings, with widespread growth across most states. However, the mixed results in private sector house approvals and non-residential building values suggest a complex landscape for the industry.
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