Building approvals rise for first time since May

The news: Australia's total number of dwelling approvals rose 7% in August after a 7.4% fall in July, but the value of non-residential building approvals continues to fall.

The numbers: Total dwelling approvals were mixed by state, with Victoria (+22.2%), NSW (+12.5%) and WA(+12.35) recording upticks, while approvals in Queensland (-26.9%), Tasmania (-10.1%), and SA (-6.9 %) decreased. The value of non-residential building approvals was unable to recover in August, falling another 1.5% after plunging 26.9% in July. The value of total building approvals rose 0.55% after dropping 16% in July, and residential buildings improved by 2.3%.

The context: Slumping building approvals have underscored rental crises in both metropolitan and regional centres around the country. The Albanese government has targeted an extra 1.2 million homes to be built over the next five years, but residential construction levels have been sluggish in a high-interest, high-inflation environment. Last week, building materials company Brickworks posted a 54% drop in full-year profit as labour, energy and materials costs ate away at a 7.8% increase in revenue.