There was a 7.7 per cent decrease in the total number of approved dwellings in June, after experiencing a 20.5 per cent increase in May when adjusted for seasonal variations, according to data released yesterday by the Australian Bureau of Statistics (ABS).
“The fall in total dwellings was driven by the volatile private dwellings excluding houses series, which fell 21.0 per cent,” Daniel Rossi, ABS head of construction statistics, said.
“Approvals for private sector houses decreased 1.3 per cent, following a 0.8 per cent rise in May.
“The average approval value for new houses has continued to increase year-on-year since April 2021. In June 2022 the average approval value for a new house was $409,900. Over the past 12 months this has risen by 12.5 per cent to an average of $461,200 in June 2023.”
It comes as the total value of housing loan refinancing between lenders declined by 3.1 per cent but remained high, reaching $20.2 billion.
“Refinancing activity has remained at record highs in recent months, as borrowers continued to switch lenders amid interest rate rises. The value of total refinancing between lenders was 12.6 per cent higher in June compared to a year ago,” Mish Tan, ABS head of finance statistics, said.
Dwelling approvals across Australia showed a mixed pattern. New South Wales and Tasmania experienced declines of 44.9 per cent and 35.6 per cent, respectively, following strong results in May with increases of 54 per cent and 40.3 per cent, respectively. On the other hand, Queensland, Victoria, Western Australia, and South Australia recorded rises of 28.3 per cent, 26.4 percent, 8.7 per cent, and 0.8 per cent, respectively, when adjusted for seasonal variations.
In June, approvals for private sector houses showed varying trends, with Western Australia and Victoria experiencing declines of 5.5 per cent and 2.7 per cent, respectively. Meanwhile, South Australia, Queensland, and New South Wales saw increases of 4.6 per cent, 3.6 per cent, and 2.3 per cent, respectively.
The overall value of total building approvals increased by 1.2 per cent, following an 11.4 per cent rise in May. However, the value of total residential building decreased by 4.6 per cent, with new residential building falling by 4.6 per cent and alterations and additions decreasing by 4.7 per cent.
The value of approved non-residential building projects reached a record high, rising by 7.6 percent in June, following a 7.2 per cent increase in May. This marks the third month in the past ten years where the value of non-residential projects exceeded the value of total residential projects, with the previous instances occurring in August 2019 and January 2020.
The value of new owner-occupier loan commitments (excluding refinancing) fell 2.8 per cent to $15.9 billion. The value of new investor loan commitments rose 2.6 per cent to $8.7 billion, though it was 15 per cent lower compared to a year ago.
For first home buyers, the number of new loan commitments fell 0.8 per cent over the month to June and fell 12.2 per cent compared to a year ago. The number of loan commitments for June (8,239) is around half the level seen in January 2021, when first home buyer lending peaked during the COVID-19 pandemic.