Approvals to build new apartments dropped by one-quarter in January, according to data released this week by the Australian Bureau of Statistics (ABS).
The seasonally adjusted figures show that the total number of homes approved fell 7.2 per cent in January to 14,564.
ABS head of construction statistics Daniel Rossi said the result was driven by a 24.5 per cent fall in multi-unit homes.
“This is the second consecutive fall in private dwellings excluding houses, following a 30.7 per cent drop in December”, Rossi added.
Approvals to build houses, conversely, rose 1.1 per cent to 9,753. This is 7.1 per cent higher than one year ago, but the results varied around the country.
“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.”
In original terms, apartment approvals fell by almost half to 1,819. 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 1,684), after a 3.5 per cent fall in December. This figure is 11 per cent lower than a year earlier.
“We often see a drop in approvals in January with many people on holiday or taking annual leave”, Rossi said.
“This is evident in original numbers which do not account for seasonal effects.”
The value of total residential building fell 1.2 per cent in January to $9.48 billion. The result comprised 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).