Building approvals down 10.6% over the year

The news: Australian building approvals fell for the second straight month in July, as high costs and interest rates continue to drag on the sector.

The numbers: Australian building approvals fell 8.1% in July and are down 10.6% since the same time last year. Dwelling approvals lifted in the ACT (8.4%), Victoria (4.5%), NSW (1.5%) and Tasmania (0.4%). The NT (-5.3%), Queensland (-1.5%), WA (-0.4%), and SA (-0.2%) saw approvals decrease. In July there were 12,668 total dwelling units approved, seasonally adjusted, down significantly from the March 2021 peak of 23,057, shortly before end of the Morrison government's HomeBuilder stimulus program.

The context: A high interest rate environment and rising material and building costs are putting pressure on new builds in the property sector.