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$vuetify.icons.faPhone1300 650 620

Detached building approvals lift in October

Media release

Detached building approvals lift in October

Media release
Detached building approvals are continuing to sustain healthy levels, above those seen pre-COVID

The Australian Bureau of Statistics today released its monthly building approvals data for detached and multi-units data covering all states and territories.

“Approvals for detached homes in the three months to October 2021 increased by 5.6 per cent compared with the same period in the previous year,” added Mr Devitt.

“Ongoing strong sales and approvals numbers continue to confirm that detached home building will remain elevated throughout 2022. A change in consumer preference is now the main force driving this demand.

“The value of renovations approved also remains elevated. The last 12 months has seen the value of renovations approved increase by 37.3 per cent on the previous year. 

“Multi-unit approvals numbers have been solid in recent months but fell away sharply in October with a 36.1 per cent decline. Multi-unit approvals in New South Wales and Victoria fell by 48.6 per cent and 15.8 per cent respectively, in the month of October. The sharp decline in multi-unit approvals in October could be an implication of the lockdowns in Sydney and Melbourne earlier in the year. 

“Despite this, multi-unit starts in the last three months were 24.0 per cent higher than at the same time the previous year when COVID adversely impacted the multi-unit market. 

“The multi-units market depends heavily on overseas migrants, tourists and students. The re-opening of international borders is crucial to the prospects of this sector,” concluded Mr Devitt.

In seasonally adjusted terms, total residential building approvals increased in the three months to October 2021 compared to the same time in 2020 in most states. New South Wales led the pack (+28.1 per cent), followed by South Australia (+20.7 per cent), Queensland (+8.3 per cent), and Victoria (+6.7 per cent). Declines occurred in Western Australia (-5.7 per cent) and Tasmania (-19.3 per cent). In original terms, building approvals increased in the Australian Capital Territory (+38.5 per cent) and declined in the Northern Territory (-50.8 per cent).

Monthly Building Approvals - Australia
Monthly Building Approvals - Australia - source: ABS 8731

For more information:

Thomas Devitt


Tim Reardon

Chief Economist
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