However,approvals for detached houses were 1.7 per cent lower at 8506 in November,from 8649 the previous month. This compares with 9071 private house approvals in November 2022 and 11,527 that month in 2020.
Despite the monthly increase in total dwelling approvals,they are down so far this financial year. The bureau’s head of construction statistics,Daniel Rossi,said 70,900 dwellings had been approved between July and November 2023,compared with 81,954 over the same period in 2022.
Results varied across Australia. Total dwelling approvals fell 6.9 per cent in NSW,while Victoria recorded a 7.8 per cent increase.
Housing Industry Association chief economist Tim Reardon predicts the number of building approvals for detached homes will continue to decline into the middle of 2024.
“In 2024,we expect the start of the least number of detached homes since 2012. The reason for that is principally the rise in the cash rate has eaten into market confidence … that rise in the cash rate naturally has also compounded the rise in the cost of building a new home,” Reardon said.
The Reserve Bank of Australialifted interest rates to 4.35 per cent in November,its 13th increase since May 2022.