According to the Australian Bureau of Statistics’ (ABS) November 2024 data, total dwelling approvals fell by 3.6% compared to the previous month but rose 7.2% over the three months to November.
“Detached house approvals in the three months to November 2024 increased by a modest 0.7% on the previous three-month period and climbed 7.1% compared to the same period in the previous year, said HIA Senior Economist Matt King.
“There are signs of life again in building approvals, pointing to a nascent recovery in new home building.”
The multi-unit sector also showed improvement, with approvals rising 20.1% over the same period and 2.6% higher than the corresponding period in 2023.
However, Mr King acknowledged challenges remain: “Despite some improvement, multi-unit approvals remain subdued, trending at decade-low levels amid challenges like cost escalations, skilled labour shortages, and credit constraints for businesses.”
Western Australia led the nation in growth for both detached house and multi-unit approvals, with increases of 40.8% and 207.5%, respectively, in the three months to November 2024 compared to the same period in 2023.
South Australia, Queensland, and the Northern Territory also recorded strong growth in detached house approvals, while Victoria and New South Wales saw modest gains in multi-unit approvals.
Despite these encouraging trends, Mr King stressed the importance of government policy in sustaining and amplifying the recovery.
“Policy makers must double down on reducing industry red tape, excessive taxation, and improving land availability and skilled labour supply,” he said.
A national recovery is in sight, but Mr King noted that the size of the upswing will depend heavily on Federal and State Government housing policies.
