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Approvals switch to apartments

Building approvals continue to fluctuate, according to data released this week by the Australian Bureau of Statistics (ABS).

Despite a drop in September, demand for new home building is still high, with multi-units now racing ahead of stand-alone houses.

The latest figures show that the seasonally adjusted number of homes approved fell 4.3% in September, following a 7.6% rise in August.

The decrease in the total number of dwellings approved in September was driven by a large fall in approvals for houses, which were down 16.0%. Dwellings excluding houses rose by 18.1%.

According to ABS Director of Construction Statistics Daniel Rossi, the decline in private house approvals over recent months can be largely attributed to the end of federal and state stimulus measures.

“Despite the fall in September, the series remains 18.2% higher than the pre-pandemic level in September 2019″, Rossi added.

Around Australia, approvals fell 22.7% in South Australia, 21.5% in Queensland, 20.9% in Western Australia, 15.7% in Victoria and 11.8% in Tasmania. New South Wales rose 27.2%, driven by a jump in apartment developments approved in September.

The value of total residential building fell 11.1% in September, comprising a 9.6% decrease in new residential building, and a 20.0% fall in alterations and additions after the series reached its second-highest level in August.

About Adam Nobel

Principal
M. Bus, Grad Dip Adv, B.Int Bus, LREA

adam@hugoalexander.com.au

0417 007 001

Adam is the founder and Principal of Hugo Alexander Property Group. With a previous career in advertising, 20 years experience in property investment, and 14 years in Brisbane real estate, he knows the market inside out to ensure his clients grow their wealth faster.

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