Big states see big declines in home building

Adam Smith 3 November 2016

building houseResidential building has seen a sharp drop-off in September, new figures show.

Figures released by the Australian Bureau of Statistics (ABS) show total dwelling approvals fell by 8.7% during September. The largest states have seen the sharpest declines in approvals. Victorian residential building approvals fell 15.6%, while approvals were down 13.3% in New South Wales and 11.7% in Queensland. Approvals were up by 9.4% in South Australia, and rose 5.5% in Western Australia.

The fall in approvals was largely driven by a decline in apartment building, Housing Industry Association senior economist Shane Garrett said.

High-rises dominate unit market

“During the month, a total of 18,945 approvals were recorded. Detached house approvals actually increased by 1.7% during the month, while multi-unit approvals were down by some 17.5% in month-on-month terms,” Garrett said.

In spite of the decline, Garrett said the volume of multi-unit approvals remained high by historical standards.

“This means that the immediate pipeline of work will remain very elevated on the apartment side,” he said.

Latest home loans headlines

Image: Shutterstock

Get more from finder

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, read the PDS or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms and Conditions and Privacy Policy.
Ask a question