Building approvals in October outstrip estimates
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The news: Building approvals rose 4.2% in October to 15,498, following a 5.8% increase in September, according to seasonally adjusted data released by the Australian Bureau of Statistics (ABS).
The numbers: The headline figure was double the average estimate of 2.1%.
The result was driven by an increase in apartment developments approved in New South Wales and Victoria, with private dwellings excluding houses rising 24.8%. The monthly total of 5,859 dwellings was 7.1% higher than a year ago.
In nine or more storey blocks, 2,782 apartments were approved in October, compared to 1,815 in September, the most high-rise apartments approved since January this year.
Meanwhile, private sector house approvals fell by 5.2% to 9,191 in October, after reaching a two-year high in September. Despite the fall, private sector houses remain 2.4% higher than a year ago.
South Australia was the only state to see growth in October, with a 1% rise. The 905 private sector houses approved was the highest result for South Australia since August 2021.
The value of total building approved fell 3.7%, or $13.21 billion, following a 1.2% rise in September. The value of approved non-residential building dropped 13.4%, or $4.89 billion, following a 3.7% September rise.
Total residential building value rose 3.2%, or $8.33 billion, made up of a 4.4% rise in the value of new residential building approved and a 4.2% fall in alterations and additions.
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
