In November, Australia witnessed a downturn in dwelling approvals, with a 3.6% decrease to 14,998 units from a rise the previous month, fresh ABS figures showed.
According to Daniel Rossi, ABS head of construction statistics, the decline was evident across all residential building types, with private sector houses seeing a 1.7% drop and non-house dwellings plummeting by 10.8%.
Despite the national decrease, house approvals showed varied trends across the states.
Queensland notably bucked the trend with a 4.3% increase in approvals for private sector houses, highlighting regional disparities in housing demand and economic conditions.
Overall, private house approvals declined to 9,028 dwellings, yet they still recorded a 3.8% increase compared to the previous year.
The more significant retreat in November was seen in the non-house sector, where approvals for private dwellings excluding houses fell sharply by 10.8% to 5,285 units.
This drop was primarily influenced by substantial declines in apartment approvals in New South Wales and Victoria, suggesting a cooling in some of the country’s previously hot markets.
The total value of all building approvals rose by 6.6% to $14.32 billion, with non-residential buildings surging by 18.4% to $5.96bn, demonstrating a rebound from the previous month’s fall.
However, the residential sector did not fare as well, with the total value of residential buildings slightly down by 0.5% to $8.36bn. This included a marginal decline in new residential buildings and a slight increase in renovations and additions.
Matthew Hassan (pictured above), head of Australian macro-forecasting at Westpac, commented on the latest approvals data.
“Dwelling approvals declined 3.6% in November, pulling back after solid gains but remaining consistent with an underlying up-trend,” Hassan said.
Despite the monthly setbacks, the market shows a year-on-year growth maintaining a steady recovery pace, albeit with a slow and shaky momentum.
Hassan highlighted the continued softening of the wider housing market towards the year-end and the cautious outlook for the construction pipeline going forward.
As the property market heads into 2026, the fluctuating approval rates in November reflect ongoing economic adjustments and sector-specific challenges.
While some regions like Queensland show resilience, the broader Australian property market faces a complex recovery terrain, impacted by both domestic factors and broader economic conditions.
Investors and stakeholders will need to navigate these fluctuations carefully as they plan for the future in an uncertain market landscape.
See the ABS media release or read "Building Approvals, Australia, November 2024" for more details. Read the Westpac commentary here. To compare the latest figures with the previous month’s, click here.
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