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{{propApi.successMessage}} {{region}} Change locationBuilding approvals fell 3.1 per cent in March
Building approvals fell 3.1 per cent in March
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The Australian Bureau of Statistics today released its monthly building approvals data for March for detached houses and multi-units covering all states and territories.
“Despite the decline in March and the weak performance in January during the holidays and the Omicron outbreak, detached home approvals for the first three months of 2022 were still 9.0 per cent higher than the equivalent pre-pandemic quarter,” added Mr Devitt.
“This continues to reflect the strong ongoing demand for housing in the first quarter of 2022, albeit at levels below those observed over the past two years.
“Multi-unit approvals declined by 37.7 per cent in March to be down by 9.9 per cent in the last three months compared to the equivalent pre-pandemic quarter.
“Affordability issues, land constraints and a return of overseas migrants, students and tourists will help support demand for units, townhouses and apartments.
“The value of renovations approved also remained elevated, with the last three months sitting 31.5 per cent above the equivalent pre-pandemic quarter.
“The impact of this week’s rise in the cash rate on building approvals could take more than six months to emerge in this data set.
“The shortage of rental accommodation remains the key driver for demand for new homes in this cycle.
“The existing pipeline of work will keep builders busy this year and well into next year, limited by the availability of land, labour and materials,” concluded Mr Devitt.
In seasonally adjusted terms, total residential building approvals decreased in the last three months compared to the previous quarter in most jurisdictions, including Western Australia (-20.4 per cent), South Australia (-16.2 per cent), Victoria (-7.6 per cent), and Queensland (-4.9 per cent), while New South Wales saw an increase (+1.5 per cent). In original terms, approvals decreased in the Australian Capital Territory (-21.4 per cent) and Tasmania (-7.4 per cent) and increased in the Northern Territory (+122.0 per cent).
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