“There were 15,500 dwellings approved for construction nationally in the month of October, the highest number of approvals in almost two years,” stated HIA Economist, Maurice Tapang”.
The Australian Bureau of Statistics today released its monthly building approvals data for October 2024 for detached houses and multi-units covering all states and territories.
“Total dwelling approvals have risen by 4.2 per cent compared to the previous month, which confirms the rise in home building activity expected in 2025,” added Mr Tapang.
“Detached house approvals in the three months to October 2024 have increased by 8.7 per cent compared to the same time in the previous year.
“It has been more than a year since the RBA last raised interest rates. Unchanged interest rate settings has provided some degree of certainty for consumers.
“Households are returning to new home building despite there being no cut to the cash rate. This is because unemployment remains at very low levels, while housing demand remains very strong.
“Prices of home building materials have also been growing at a more normal pace, the latest data showing a 1.4 per cent annual increase in September 2024.
“Low unemployment, unchanged interest rates, stable growth in materials prices and a return to normal build times are helping lift up the market from its recent trough.
“Multi-unit approvals rose by 22.4 per cent in the month of October to 6,130. Approvals for multi-units have been bumpy and trending at decade-low levels amid challenges with capacity.
“This leaves multi-unit approvals in the three months to October to 15,750, which is 1.2 per cent higher compared to the same time in the previous year.
“Multi-units would need to pick up more strongly in order to achieve the Australian Government’s target of 1.2 million homes over five years,” concluded Mr Tapang.
Detached house approvals in the three months to October 2024 rose by 42.0 per cent in Western Australia compared to the same time in the previous year. This was followed by South Australia (+22.3 per cent) and Queensland (+13.6 per cent). The other states and territories recorded declines over the same period, led by the Australian Capital Territory (-13.3 per cent), followed by Tasmania (-11.7 per cent), the Northern Territory (-5.9 per cent), New South Wales (-4.3 per cent), while Victoria remained relatively unchanged (-0.4 per cent).
Multi-unit approvals in the three months to October 2024 doubled in Western Australia (+109.7 per cent) compared to the previous year. This was followed by Queensland (+33.9 per cent), the Northern Territory (+21.4 per cent) and Victoria (+4.0 per cent). Declines were recorded in Tasmania (-78.6 per cent), the Australian Capital Territory (-76.5 per cent), New South Wales (-8.5 per cent) and South Australia (-1.2 per cent).
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