Aussie housing approvals slump while building values climb

Data from the Australian Bureau of Statistics revealed a cooling residential construction landscape, with total dwelling approvals sliding 7.2% in January to a seasonally adjusted 14,564.

The downturn was primarily fuelled by a significant 24.5% collapse in the "private dwellings excluding houses" sector—marking its second consecutive monthly decline.

While apartment and townhouse approvals both plummeted in original terms, Daniel Rossi, ABS head of construction statistics, noted that January often reflects a seasonal lull as Australians take annual leave.

Despite the softening in housing volume, the total value of approved building work defied the trend, climbing 7.3% to $17.71 billion.

The growth was spearheaded by a 19.1% rise in the non-residential sector, which reached $8.24 billion.

In the residential space, results were more tempered; while private house approvals saw a modest 1.1% rise—led by an 11.5% jump in Western Australia—the overall value of new residential building dipped 1.6%.

"Western Australia recorded the largest rise in January, up 11.5%, to reach the highest level since May 2021," Rossi said, contrasting the state's performance against an 8.9% fall in South Australia.