Economic Indicator

Aussie dwelling approvals show strong increase in September

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The Australian Bureau of Statistics said the total number of dwellings approved rose 4.4% in September, reaching 14,842 approvals.

The uptick follows a decline of 3.9% in August, according to seasonally adjusted data.

Daniel Rossi, head of construction statistics at ABS, commented on the report, "The rise this month was driven by increases across all dwelling types. Private sector house approvals reached 9,745 in September, marking the highest level since August 2022."

Private dwellings excluding houses saw a rise of 4.7%, totaling 4,653 approvals. However, this figure remains subdued, following a significant decline of 13.5% in August.

Despite a mixed performance across states, private sector house approvals across Australia increased 2.2% compared to the previous month and are up 16.7% compared to September 2023.

South Australia led the way with the most significant increase, reporting a rise of 10.3%. Western Australia also showed robust growth, approving 1,661 private sector houses, the highest number since May 2021.

In the category of private dwellings excluding houses, September’s approvals reflected a rise of 4.7%.

This was primarily driven by a surge in high-density apartment approvals, with 1,815 apartments in nine or more storey blocks approved in September, up from 1,201 in August.

Despite this month’s gains, the total remains 12.2% lower than the same time last year.

The value of total building approvals increased by 1.4%, totalling $13.61 billion, following a rise of 1.1% in August.

The value of approved non-residential buildings climbed 3.6% ($5.57 billion), building on an impressive 11.3% increase from the previous month.

In terms of residential buildings, the total value remained stable at $8.04 billion.

This includes a modest increase of 0.2% in the value of new residential buildings approved ($6.88 billion) but a decline of 1.3% in alterations and additions ($1.16 billion) on a seasonally adjusted basis.

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