Home Property Australia Dwelling approvals fall in June

Dwelling approvals fall in June

  • July 31, 2024
  • by Property Australia

The total number of dwellings approved fell 6.5 per cent in June to 13,237, after a 5.7 per cent rise in May, according to seasonally adjusted data from the Australian Bureau of Statistics (ABS).

Over the past 12 months, there have been a total of 162,892 dwellings approved, compared to 177,936 in the 12 months prior, representing a 8.5 per cent decrease, in original terms. 

“This is the lowest number of dwellings approved on a financial year basis since 2011/12,” Daniel Rossi, ABS head of construction statistics, said.

“Private sector houses fell by 0.5 per cent in June. The fall was mainly driven by New South Wales which fell 19 per cent. With the latest figure of 1,597 private houses approved, this is the lowest recorded figure for New South Wales since January 2013.”

Material and labour shortages continue to impact the housing sector, with the average approval value for new houses rising by $19,444 between June 2023 and June 2024.

“Private sector dwellings excluding houses fell by 19.7 per cent in June, reaching the second lowest monthly level recorded since January 2012,” Mr Rossi said.

“The June figure represents a yearly fall of 22.1 per cent compared to the same month last year. Conditions for apartments remain challenging owing to high construction costs and higher interest rates.” 

In original terms, there was 29,388 apartment units approved in the 12 months to June 2024, compared with 40,443 in the previous 12 months.

Approvals for total dwellings fell in New South Wales (-18.8 per cent), Victoria (-13.5 per cent), Western Australia (-8.5 per cent) and South Australia (-1.6 per cent). Meanwhile, Queensland (14.6 per cent) and Tasmania (8.8 per cent) both rose in June, in seasonally adjusted terms.

Approvals for private sector houses fell in New South Wales (-19 per cent) and Western Australia (-5.1 per cent). However, Queensland (16.1 per cent), South Australia (7.1 per cent) and Victoria (2.6 per cent) all rose in June, in seasonally adjusted terms.

Property Council Group Executive Policy and Advocacy Matthew Kandelaars said the figures continue to paint a challenging picture for reaching our 1.2 million new homes by 2029 target. 

“That our dwelling approval numbers have hit the lowest number on a financial year basis in over a decade is a clear sign of the challenges we face in delivering the homes Australians need,” Mr Kandelaars said.

“If we don’t accelerate our efforts, we will fall far short of what should be an attainable target. 

“Governments nationwide must use every available measure to help industry deliver the desperately needed supply of new homes. 

“We need an invigorated focus on supply-inducing last-mile infrastructure, more construction labour and we need to ensure that first-home buyers are given a better chance of accessing credit for housing. 

“To achieve our goal of 1.2 million homes, we need to adopt a proactive mindset and pull every lever available to unlock more supply – including new homes for students, renters and retirees,” he said.