WA Leads Way as Home Approvals Surge

Home approvals put on a sprint last month, up 5.5 per cent.

According to seasonally adjusted data released by the Australian Bureau of Statistics (ABS), total approvals were up in all states and territories.

The lift follows a 1.9 per cent rise in April.

ABS head of construction statistics Daniel Rossi said the rise in approvals in May was driven by private sector homes excluding houses, which rose 16.3 per cent.

Private sector house approvals rose by 2.1 per cent, he said

Among the states, Western Australia lead the rise in total approvals, up 19.6 per cent, followed by Victoria (8.9 per cent), Queensland (6.3 per cent), South Australia (4.1 per cent), Tasmania (3.8 per cent) and New South Wales (2.9 per cent).

Meanwhile, approvals for private sector houses increased in Western Australia (8.4 per cent), New South Wales (5.9 per cent) and Queensland (3.7 per cent) but fell in Victoria (down 3.4 per cent) and South Australia (down 1.9 per cent).

The value of total building approved rose 0.6 per cent to $13 billion after a 0.7 per cent fall in April.

The value of total residential building rose 2.3 per cent to $7.6 billion, comprising a 4.4 per cent rise in new residential building and a 9.3 per cent fall in alterations and additions.

The value of non-residential building approved fell 1.6 per cent to $5.4-billion after a 0.7 per cent rise in April.

Home approvals May 2024

▲ Source: ABS

HIA chief economist Tim Reardon said there had been 163,760 home approvals during the 12 months to May.

“This is well below the 240,000 new homes needed each year from 1 July 2024 to achieve National Cabinet’s goal,” he said.

“The low approvals numbers indicate a slow start to building 1.2 million homes over the next five years.

“Addressing tax, planning, land and regulatory constraints will be necessary to increasing the supply of homes in Australia.”