Approvals to build new apartments jumped by one third in June, according to data released this week by the Australian Bureau of Statistics (ABS).
The latest figures show that the total number of dwellings approved rose 11.9 per cent in June to 17,076, seasonally adjusted.
ABS head of construction statistics Daniel Rossi noted that this number is the highest level since August 2022.
“The movement was driven by a strong rise in private dwellings excluding houses, which rose 33.1 per cent”, Rossi added.
Approvals to build standalone houses, however, fell 2.0 per cent to 9,142, following a 1 per cent fall in May.
Rossi observed that a total of 185,844 dwellings have been approved over the last 12 months.
“This is 13.5 per cent higher than the 12 months before that, which had 163,692 dwellings approved.”
Falls were recorded across the country, with the largest being in Queensland, which fell 6.3 per cent. Victoria was the only state to rise in house approvals, up 1.4 per cent.
“The average approval value for new private sector houses has continued to rise year-on-year, but has slowed during the 2024-25 financial year”, Rossi said.
“The slowing average approval values for new houses is consistent with moderating building costs, as reflected in Producer Price Indexes.
“The average approval value for a new house over the 2024-25 financial year was $493,185, representing a 4.8 per cent rise on the average of $470,558 in 2023-24. For comparison, the average approved value of a new house in 2023–24 was 6.4 per cent higher compared to the average in 2022–23.”
The 33.1 per cent rise in multiunit approvals (to 7,594 dwellings) followed a 10.3 per cent May rise.
“The 7,594 private sector dwellings excluding houses, was the highest result for the series since December 2022”, Rossi said.
In original terms, approvals for apartments rose 12.2 per cent, following a 30.9 per cent rise in May. There were 42,387 new apartment dwellings approved in the current financial year. This is a 42.1 per cent rise from 29,826 in 2023-24.