The Australian Bureau of Statistics released its monthly building approvals data for May 2024 for detached houses and multi-units covering all states and territories. Source: Timberbiz
In seasonally adjusted terms, approvals in the three months to May 2024 saw an increase of 51.1%in Western Australia compared to the same time in the previous year. This was followed by Victoria (+10.0%). The other jurisdictions recorded declines over the same period, led by the New South Wales (-21.6%), followed by South Australia (-6.0%) and Queensland (-4.8%).
In original terms, the Australian Capital Territory recorded a 33.4% increase in approvals in the three months to May 2024 compared with the previous year. Approvals over the same period fell in the Northern Territory (-34.3%) and in Tasmania (-16.3%).
“This leaves approvals in the three months to May 2024 down by 1.5% compared with the same period in the previous year,” HIA Chief Economist Tim Reardon said.
There were 14,180 residential building approvals in the month of May, with 9,260 detached house approvals and 4,920 multi-units.
Detached house approvals increased by 1.3% in May 2024 and have been slowly strengthening in recent months.
Detached approvals in the three months to May 2024 are up by 10.0% compared with the same period in the previous year.
“Multi-unit approvals increased by 14.3% in May from very low levels in recent months. Over the three months to May 2024, multi-unit approvals remain 19.1% lower than in the same period in the previous year,” Mr Reardon said.
“There have been 163,760 total dwelling approvals over the most recent 12 months to May 2024.
“This is well below the 240,000 new homes needed each year from 1 July 2024 to achieve National Cabinet’s goal,” he said.
“The low approvals numbers indicate a slow start to building 1.2 million homes over the next five years.
“Increasing the number of homes built will be necessary to address longstanding housing shortages.
“Addressing tax, planning, land and regulatory constraints will be necessary to increasing the supply of homes in Australia,” Mr Reardon said.
Meanwhile CEO Denita Wawn said Monday marked the first day of the Housing Accord race to building 1.2 million homes, but we are not race ready.
“Governments have had over 600 days to align all policy levers and help put the industry in the best possible position to build enough new homes.
“While there’s been some progress at a state and federal level, particularly in the housing portfolios, it has simply not been fast enough or is being undermined by other policies.
“Simply put, investment in new home building does not stack up without further reform.
“Industrial relations laws, worker shortages, slow planning approvals, a lack of critical infrastructure, high developer taxes and charges, and licensing delays all add to the cost and time it takes to build.
“We need to build a significant amount of higher-density homes, particularly to relieve the pressure on the rental market, but the builders who are relied upon to deliver these projects are now hamstrung by restrictive CFMEU pattern EBAs,” Ms Wawn said.
