Building approvals tick up

Building approvals ticked up again in March, according to data released this week by the Australian Bureau of Statistics (ABS).

The latest figures show that the total number of homes approved rose 1.9 per cent in March (seasonally adjusted), after a 0.9 per cent decrease in February.

Approvals to build houses rose 3.8 per cent, while approvals for 'dwellings excluding houses' rose 3.6 per cent in March in seasonally adjusted terms, following a 12-year low in February.

The total number of approvals rose in Victoria (3.2 per cent) and Western Australia (1.5 per cent), but fell in Tasmania (down by a whopping 18.1 per cent), South Australia (7.0 per cent), Queensland (5.2 per cent), and New South Wales (1.2 per cent).

Approvals for standalone houses rose in Victoria (6.0 per cent), New South Wales (4.0 per cent), Queensland (3.2 per cent), and South Australia (1.1 per cent). Only Western Australia (down 1.8 per cent) saw a March decrease.

The average approval value for a new house continued its annual rise in March 2024, to $468,800 per house. This was 4.2 per cent higher than the average value in March 2023, although the pace of growth in average approval values has slowed. Higher construction costs continue to weigh on dwelling approvals, with the average approval value for a new house rising in all states.

By state, average approval value compared to a year ago rose the most in Queensland (10.1 per cent), followed by Western Australia (4.2 per cent), New South Wales (3.5 per cent), Victoria (3.5 per cent), and South Australia (0.4 per cent).

The value of total residential building approvals rose 8.3 per cent, comprising an 8.7 per cent increase in new homes and a 6.1 per cent rise in alterations and additions.