Dwelling approvals take a nosedive across the country

PEOPLE enjoying annual leave in January is the principal reason for a sharp drop in the number of dwellings being approved nationally.

The Australian Bureau Of Statistics produced seasonally adjusted data on Tuesday which showed the total number of dwellings approved fell 7.2 per cent in January to 14,564.

Daniel Rossi, ABS head of construction statistics, said: “The drop in total dwellings approved was driven by a 24.5 per cent fall in private dwellings excluding houses. 

“This is the second consecutive fall in private dwellings excluding houses, following a 30.7 per cent drop in December.

“We often see a drop in approvals in January with many people on holiday or taking annual leave,” Rossi added.

“This is evident in original numbers which do not account for seasonal effects.”

Private sector house approvals rose 1.1 per cent to 9753 dwellings. This is 7.1 per cent higher than one year ago, the ABS report said.

“Western Australia had recorded the largest rise in January, up 11.5 per cent, to reach the highest level since May 2021,” Rossi said. 

“In contrast, South Australia had the largest fall, down 8.9 per cent.”

Apartment approvals fell by almost half to 1819 dwellings. This is a larger fall than in December and 60.1 per cent lower than a year earlier.

Townhouse approvals also fell in January, down 39.2 per cent (to 1684 dwellings) after a 3.5 per cent fall in December. This is 11 per cent lower than a year earlier.

The value of total building approved rose 7.3 per cent in January to $17.71 billion, after a 11.4 per cent fall last month. 

Driving the overall value rise was non-residential building which was up 19.1 per cent to $8.24 billion after a 5.2 per cent fall in December. 

Total residential building fell 1.2 per cent (to $9.48 billion).  The result was comprised of a 1.6 per cent fall in new residential building (to $8.21 billion) and a 1.6 per cent rise in alterations and additions (to $1.27 billion).