{{propApi.title}}
{{propApi.text}} {{region}} Change location{{propApi.title}}
{{propApi.successMessage}} {{region}} Change location {{propApi.title}}
{{propApi.text}} {{region}} Change location{{propApi.title}}
{{propApi.successMessage}} {{region}} Change locationImpact of rate rises still to hit building approvals
Impact of rate rises still to hit building approvals
Member and guest login
Enter your email and password to access secured content, members only resources and discount prices.
Did you become a member online? If not, you will need to activate your account to login.
If you are having problems logging in, please call HIA helpdesk on 1300 650 620 during business hours.
Forgotten password
Need some help?
If you are having problems logging in, please call HIA helpdesk on 1300 650 620 during business hours.
If the email address you have entered is registered, you will receive an email with further instructions.
Become part of the HIA community
Enables quick and easy registration for future events or learning and grants access to expert advice and valuable resources.
Create a guest account
Enter your details below and create a login
The Australian Bureau of Statistics today released its monthly building approvals data for October for detached houses and multi-units covering all states and territories.
“Despite the decline in approvals in recent months, they are yet to reflect the adverse impact of rate rises that commenced in May 2022,” added Mr Devitt.
“Building approvals have been sustained in recent months by the record number of home sales prior to the first increase in the cash rate that still haven’t been approved, much less commenced construction.
“Sales in and financing of new homes have fallen significantly in recent months, but this is yet to flow through to the number of homes gaining council approval.
“The full impact of the rate rise will not be observed in approvals data until 2023 when the pool of earlier sales is exhausted.
“Building approvals for detached housing declined by 2.4 per cent in October compared to the previous month leaving them 11.8 per cent lower for the three months to October 2021.
“Multi-unit approvals also declined in the month of October, down by 11.4 per cent, though on a quarterly basis, this is up by 13.9 per cent on pre-pandemic levels.
“Affordability constraints in the detached market, combined with tight rental markets and returning overseas migrants, students and tourists, are set to support demand for more affordable, higher density living.
“This means the multi-units market is set to continue strengthening in the face of higher interest rates and a cooling detached market.
“A large pipeline of home building work is sustaining employment across Australia and continues to obscure the impact of rising interest rates on demand for housing.
“The 2.75 per cent increase in the cash rate will bring this pandemic boom to an end, but this is yet to be reflected in approvals data,” concluded Mr Devitt.
In seasonally adjusted terms, total building approvals by state were mixed, with the declines led by Queensland, down by 22.1 per cent in October compared to the same month in 2021. This was followed by Western Australia (-20.1 per cent) and New South Wales (-9.4 per cent), with increases in South Australia (+18.8 per cent) and Victoria (+6.0 per cent). In original terms, total building approvals doubled in the Northern Territory (+104.5 per cent), with declines in the Australian Capital Territory (-21.8 per cent) and Tasmania (-8.7 per cent).
For more information please contact:
More than one in three loans issued to first home buyers
“The number of housing loans issued to first-time home buyers has been steadily increasing in recent months, pointing to strong demand for homes among aspiring homeowners,” stated HIA Economist, Maurice Tapang.
Planning systems not delivering for regional Australia
“House approvals are taking longer than ever to get through local councils and exacerbating Australia’s worsening housing and rental shortages, and this is even more pronounced in regional Australia,” said Mike Hermon, HIA Executive Director, Planning & Environment.
Women recognised for leadership in QLD home building
The 10th annual Queensland HIA Building Women Awards recognised stellar talent, and shone a spotlight on the huge contribution women are making to building more homes.
HIA releases inaugural Planning Scorecard
HIA has today released a comprehensive Planning ‘Scorecard’ that assesses each state and territory’s current planning system’s progress against the implementation of National Cabinet’s National Planning Reform Blueprint.