Building approvals fell 6.5% in June, reversing May gains
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The news: The total number of buildings approved fell 6.5% seasonally adjusted in June, far exceeding the 3% drop analysts had expected, new Australian Bureau of Statistics (ABS) figures show.
The numbers: The total number of approvals fell 6.5% to 13,237, after a 5.7% rise in May.
ABS said a total of 162,892 buildings were approved over the past 12 months, an 8.5% decrease year on year, representing the lowest number of approvals on a financial year basis since FY12.
Private sector houses fell by 0.5% in June, driven by New South Wales which dropped 19% and recorded its lowest recorded figure since January 2013.
Material and labour shortages continue to impact the housing sector, the ABS said, with the average approval value for new houses rising by $19,444 between June 2023 and June 2024.
Private sector dwellings excluding houses fell by 19.7% in June, reaching the second lowest monthly level recorded since January 2012. The June figure represents a yearly fall of 22.1% compared to the same month last year.
In original terms, there were 29,388 apartment units approved in the 12 months to June 2024, compared with 40,443 in the previous 12 months.
The value of total building approved fell 7% to $12.06 billion in June following a 0.4% rise in May. The biggest driver of the fall was in non-residential building, which fell 16.2% to $4.46 billion.
Total residential building value fell by 0.6% to $7.61 billion following a 2.7% rise in May. The value of new residential building fell 2.3% to $6.44 billion.
The level of residential alterations and additions reached an all-time high of $1.17 billion in June, rising 10.2% in seasonally adjusted terms.
The context: ABS' building approvals data shows the monthly change in the number of total dwelling units approved, including building activity carried out on existing buildings.
The source: ABS media release
