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The Australian Bureau of Statistics today released its monthly building approvals data for July for detached houses and multi-units covering all states and territories.
“Building approvals for new houses in July increased by 1.0 per cent compared to the previous month. This leaves approvals 23.0 per cent lower in the three months to July 2022 compared to the same time last year. Despite this decline, house approvals in the three months to July 2022 were 12.0 per cent higher than the same time in 2019,” added Mr Devitt.
“The strong volume of house approvals in recent months reflects the significant volume of new homes across Australia that had been sold earlier in the year, but not yet approved.
“The strong volume of approvals in July 2022 hides the impact that rising interest rates are already having on more timely data.
“New home sales across Australia declined by 13.1 per cent in July, following even earlier reports from the industry of a slowing in the number of groups visiting display sites. This will see weaker sales volumes in the second half of 2022.
“Approvals of multi units fell sharply in July, to see approvals in the three months to July 16.8 per cent lower than in the same period in 2021. Despite this decline they remain comparable with volumes of approvals prior to the pandemic.
“Given the large volume of work under construction and approved but not commenced, there will be a significant lag between the increase in the cash rate and an adverse impact on new home construction.
“The long lead times in this current cycle will hide the impact of rate rises and risk the RBA over shooting with unnecessary rate increases,” concluded Mr Devitt.
Last year the Victorian government made changes to the Building and Construction Industry Security of Payment Act 2002 (SOP Act), with some of those changes to start from 15 April 2026.
Outdated subdivision and minimum lot size controls are preventing Tasmania from delivering the homes it needs, according to a new Housing Industry Association report.
“The knowledge that there will be good employment prospects at the completion of training, provides piece of mind for today’s up and coming tradies,” said HIA Executive Director Future Workforce, Mike Hermon.
New Housing Industry Association (HIA) analysis shows state and local governments are actively blocking housing supply while publicly committing to fix affordability.