New house building approvals decreased by 1.9% in the month of November according to HIA Chief Economist, Tim Reardon. The Australian Bureau of Statistics released its monthly building approvals data for November 2023 for detached houses and multi-units covering all states and territories. Source: Timberbiz
“The fall in this month’s figures sees approvals in the three months to November lower by 8.0% compared to the same period in the previous year,” Mr Reardon said.
“The low volume of building approvals throughout 2023 will see the volume of homes commencing construction continue to slow this year.
“Other leading indicators of activity in the housing market, such as new home sales and housing finance data, are also consistent with their confirmation of this projected slowdown.
“The rise in the cash rate is the primary cause of this slowdown in approvals.
“A continued fall in the number of new homes approved indicates a slow start to the Australian government’s ambition to build 1.2 million new homes in five years starting mid-2024.”
In seasonally adjusted terms, decreases in house approvals in the three months to November compared with the same period in the previous year were led by New South Wales (-16.0%), Victoria (-7.2%), South Australia (-6.6%) and Queensland (-6.0%). Western Australia saw a 5.4% increase over the same period. In original terms, de-tached approvals in the same period fell in the Northern Territory (-30.5%) and in Tasmania (-21.9%), while the Australian Capital Territory saw an increase (+3.0%).
