House approvals rise to a 20-year high in October: Australia

Building approvals for private sector houses rose for the fourth consecutive month in October and, seasonally adjusted, were at the highest recorded level since February 2000, according to data released by the Australian Bureau of Statistics (ABS) today.

The total number of dwellings approved rose 3.8 per cent in October, in seasonally adjusted terms.

Daniel Rossi, Director of Construction Statistics at the ABS, said: “Rises were recorded across all building types in October, with private sector dwellings excluding houses increasing 6.2 per cent and private sector houses up 3.1 per cent.

“The continued strong demand for detached housing follows the relaxation of COVID-19 restrictions in most states and territories. Record low interest rates and a range of Federal and state-based incentives are also providing support for the housing sector,” he said.

The rise in total dwelling approvals was driven by large increases in New South Wales (32.1 per cent) and Western Australia (29.7 per cent). Falls were recorded in Victoria (15.0 per cent), Tasmania (3.4 per cent), South Australia (2.4 per cent) and Queensland (0.8 per cent).

Approvals for private sector houses rose in Western Australia (37.5 per cent), Queensland (9.4 per cent) and South Australia (5.0 per cent). Meanwhile, falls were recorded in Victoria (6.9 per cent) and New South Wales (4.2 per cent).

The value of total buildings approved rose 26.1 per cent in October, in seasonally adjusted terms.

The value of non-residential building rose 58.6 per cent. This rise was driven by a series of large projects in the public sector, following a weak result in September.

The value of total residential building increased 9.4 per cent, comprising a 11.5 per cent rise in new residential building, and a 3.3 per cent decline in alterations and additions.

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