Building approvals slump by 9.5% in December
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The news: Total dwelling approvals tanked 9.5% in December, with apartments driving the decline, ABS figures show.
The numbers: Approvals for buildings excluding houses sank by more than a quarter in December, seasonally adjusted, and fell 19% over the year from 73,041 in 2022 to 59,174.
The 9.5% drop in total approvals came after a 0.3% increase in November. Total approvals fell in Victoria (-18.4%), South Australia (-11.8%), and Tasmania (-2.7%), while rising in Queensland (+8.2%), WA (+7.9%), and NSW (+2.0%). The value of total building approved fell 6.4%, after a 10.4% decline in November.
The context: High interest rates, inflated material costs and labour shortages continue to weigh on Australia's construction sector, with almost 2000 building companies entering administration in the 2023 financial year, according to ASIC data.
The sources: ABS Media Release, ASIC Insolvency Statistics
