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Australia’s construction pipeline got a boost in June as approvals for new dwellings climbed to 17,076 – an 11.9% rise from the previous month, according to the latest seasonally adjusted data from the Australian Bureau of Statistics (ABS). The surge marks the highest monthly figure since August 2022, with the spike largely attributed to a sharp increase in higher-density housing.
“June saw total dwellings approved reach their highest level since August 2022. The movement was driven by a strong rise in private dwellings excluding houses, which rose 33.1%,” said Daniel Rossi, head of construction statistics at ABS.
In contrast, standalone house approvals continued to decline, falling 2% in June. It was the second monthly drop in a row, following a 1.0% fall in May. Queensland recorded the steepest decline among the states at 6.3%, while Victoria was the only state to buck the trend with a modest 1.4% increase.
The divide between housing types was also reflected in annual trends. Over the 2024-25 financial year, approvals for apartment-style dwellings reached 42,387 – a 42.1% increase compared to 29,826 in the previous year. In monthly terms, apartment approvals rose by 12.2% in June after a significant 30.9% jump in May.
Rossi noted that the 7,594 private sector dwellings excluding houses approved in June was the strongest result since December 2022.
Meanwhile, the total number of dwellings approved in original terms over the last 12 months reached 185,844, marking a 13.5% increase compared to 163,692 approvals in the year before.
Though new house approvals are falling, the average value for those still being approved continues to rise – albeit at a slower rate than in previous years. The average approval value for a new private sector house in 2024-25 so far stands at $493,185, up 4.8% from $470,558 in 2023-24. For comparison, the average in 2023-24 was 6.4% higher than in 2022-23.
“The slowing average approval values for new houses is consistent with moderating building costs, as reflected in Producer Price Indexes,” Rossi said.
