Fresh ABS data showed a 1.9% increase in the total number of dwellings approved in March, reversing a 0.9% decline in February, indicating a resilient housing market despite ongoing challenges.
According to Daniel Rossi, ABS head of construction statistics, the sector witnessed a notable recovery.
“Approvals for private houses rose 3.8%,” Rossi said in a media release. “Approvals for private-sector dwellings excluding houses rose 3.6% in March in seasonally adjusted terms, following a 12-year low in February.”
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While Victoria and Western Australia experienced increases in dwelling approvals by 3.2% and 1.5% respectively, other states faced declines. Tasmania saw a significant drop of 18.1%, with South Australia, Queensland, and New South Wales also reporting decreases of 18%.1%, 7%, 5.2%, and 1.2%, respectively.
The ABS data also revealed a mixed landscape for private sector houses across different states. Victoria led with a 6% increase, followed by gains in NSW (4%), Queensland (3.2%), and SA (1.1%). However, Western Australia countered the trend with a 1.8% decrease in approvals.
The average approval value for new houses climbed to $468,800, marking a 4.2% increase from March. Despite this growth, the rise in construction costs continued to pressure the sector. The most significant increase in approval values over the past year was in Queensland, which saw a 10.1% rise.
The total value of building approvals surged by 15.9%, with residential buildings contributing an 8.3% increase. This growth includes an 8.7% rise in new residential buildings and a 6.1% increase in alterations and additions. Non-residential building values also saw a significant rebound, rising by 28.7% after a previous decline.
Further information can be found in Building Approvals, Australia.
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