While November saw a modest monthly increase in dwelling approvals, the overall trend for the year remains below the previous year, according to data released by the Australian Bureau of Statistics (ABS).
The value of building approvals also dipped across both residential and non-residential sectors.
This comes at a time where housing supply is drastically dwindling compared to the current demand for housing, as the government continues its ambitious housing plan to build 1.2 million homes within a five year period.
Overall, the number of dwellings approved in Australia rose 1.6% in November (seasonally adjusted) after a 7.2% jump in October, according to the latest data.
Daniel Rossi (pictured above), ABS head of construction statistics, said approvals for private sector dwellings excluding houses increased 6.7%, following a 17.4% rise in October.
However, Rossi said approvals for private sector houses fell 1.7%, following a 2.9% October increase.
“Despite the monthly increase, total dwellings approved have been lower this financial year. In original terms, 70,900 dwellings were approved between July and November 2023, compared with 81,954 over the same period in 2022."
Total dwelling approvals were generally mixed across the country.
While they increased in Victoria (+7.8%) and South Australia (+6.0%) falls were recorded in Tasmania (-22.6%), Queensland (-14.6%), New South Wales (-6.9%), and Western Australia (-5.5%).
Approvals for private sector houses were driven lower by Western Australia (-2.8%), Victoria (-2.3%), and Queensland (-0.4%). South Australia (+0.8%) and New South Wales (+0.6%) rose in November.
The value of total building approvals fell 9.2%, following an 8.1% rise in October. The value of total residential building fell 2.1%, made up of a 2.0% decrease in new residential building and a 2.4% fall in alterations and additions.
The value of non-residential building approved fell 18.0%, after an 8.7% October increase.
The trend estimate for the value of total building approved fell 1.0%, after a 1.0% October decrease. The value of total residential building was flat, comprised of an unchanged result in new residential building and a 0.2% fall in alterations and additions.
The value of non-residential building fell 2.4%, following a 2.6% decrease in October.
