- Total dwelling approval numbers rose by 6.8%
- Follows a decline of 6.7% in June
- Value of total building increased by 20.3%
Dwelling approval numbers are back on the rise after four consecutive months of decline, according to the Australian Bureau of Statistics (ABS).
National dwelling approval numbers were up 6.8% in August, with seasonal adjustment accounted for.
Dwelling approvals had taken a hit earlier this year, with a decline of 6.7% in June.
ABS Director of Construction Statistics, Daniel Rossi, said the 13.7% increase in approvals for private sector dwellings excluding houses was the driving force behind the total increase. Private sector house approvals also rose by 3.5%.
“The August result indicates that approvals for detached housing remains strong despite the unwinding of stimulus measures in April and the on-going lockdowns in New South Wales and Victoria.”
Daniel Rossi, ABS Director of Construction Statistics
“Driven by record low interest rates, increased household savings and confidence in the housing market, private house approvals are 23.8 per cent higher year on year and 42.0 per cent higher than August 2019,” Mr Rossi added.
SA and Vic top performers
Only two states nationwide, South Australia and Victoria, saw growth in both the number of dwelling approvals and private sector house approvals.
Dwelling approvals were on the rise in Western Australia (21.0%), South Australia (11.8%), Victoria (10.5%) and Queensland (4.0%). A fall was observed however in Tasmania (-18.9%) and New South Wales (-2.3%).
South Australia lead the charge with a 16.6% increase in private sector house approvals, followed by Victoria (8.1%) and New South Wales (7%). Western Australia and Queensland recorded a decline of 7.3% and 5.2% respectively.
The value of total building and total residential building were also both on the rise, increasing by 20.3% and 9.2% respectively.
After observing a reduction of 30.6% in July, it appears the value of non-residential building is on the mend with a 43.8% increase.
Construction booming in Tasmania
Rising dwelling approval numbers also appear to be driving Tasmania’s construction industry, with the state achieving the largest annual growth rate in the last quarter ending June 2021.
Engineering construction activity in the state grew 37.3% as compared to the same time last year, according to the ABS.
Over $1.55 billion in construction work was completed in the last financial year, and Tasmanian Premier Peter Gutwein said the sector shows no signs of slowing down in the future.
“These initiatives are clearly delivering results, boosting our economy and keeping Tasmanians in jobs as we work to secure our future,” he said in a statement.