According to the Australian Bureau of Statistics, total dwelling approvals increased by 4.2 per cent in October 2024, with 15,500 dwellings approved for construction nationwide.
HIA Economist Maurice Tapang said the data confirms expectations of increased building activity in 2025.
“It has been more than a year since the RBA last raised interest rates. Unchanged interest rate settings has provided some degree of certainty for consumers,” Mr Tapang said.
The detached housing sector showed particular strength, with approvals rising 8.7 per cent in the three months to October compared to the previous year.
Western Australia led the growth in detached house approvals with a dramatic 42 per cent increase, followed by South Australia at 22.3 per cent and Queensland at 13.6 per cent.
The multi-unit sector also showed signs of recovery, with approvals jumping 22.4 per cent in October to reach 6,130 units, though experts note this segment needs stronger growth to meet government housing targets.
Western Australia saw exceptional performance in the multi-unit sector, with approvals more than doubling compared to the previous year, showing a 109.7 per cent increase.
Market stability has played a crucial role in the recovery, with building material prices showing modest growth of just 1.4 per cent annually as of September 2024.
“Low unemployment, unchanged interest rates, stable growth in materials prices and a return to normal build times are helping lift up the market from its recent trough,” Mr Tapang said.
However, some regions continued to face challenges, with the Australian Capital Territory, Tasmania, and New South Wales recording declines in both detached and multi-unit approvals.
“Multi-units would need to pick up more strongly in order to achieve the Australian Government’s target of 1.2 million homes over five years,” Mr Tapang said.
