Home approvals for October 2019 are in the spotlight with the latest release of building approval figures by the Australian Bureau of Statistics.

Across the states and territories, dwelling approvals fell in the Northern Territory (11.1 per cent), New South Wales (4.6 per cent), Queensland (1.4 per cent), and Western Australia (1.0 per cent).

Tasmania (4.5 per cent), South Australia (3.1 per cent), Australian Capital Territory (3.1 per cent), and Victoria (1.3 per cent) recorded increases, in trend terms.

At a Glance:

• Dwelling approvals fell in Northern Territory(11.1 per cent), New South Wales (4.6 per cent), Queensland (1.4 per cent), and Western Australia (1.0 per cent).
• Dwelling approvals rose in Tasmania (4.5 per cent), South Australia (3.1 per cent), Australian Capital Territory (3.1 per cent), and Victoria (1.3 per cent).
• It is the 23rd month where dwelling approvals have fallen.

The Property Council of Australia is demanding a response to these figures from all levels of government.

“While a lot of attention is being paid to the recent recovery in housing prices, the story with the big impact on jobs and GDP is the continued decline in housing approvals,” said Ken Morrison, Chief Executive of the Property Council of Australia.

“Housing construction is a key driver for the economy, and it has been slowing down significantly.

“As the ABS notes, this was the 23rd month where dwelling approvals had fallen."

Mr Morrison said the concern with these figures revolved around the jobs in the housing construction industry and the economic activity they support.

“It’s also a flashing warning light for the future housing affordability, especially in our largest cities," said Mr Morrison.

“Our growing population needs housing, and governments need a laser-like focus on their planning regimes to ensure that we can bring new housing to the market where and when it’s needed."

Housing Industry Association economist Angela Lillicrap said the declines over the past year have been driven by underwhelming economic conditions and a tighter credit environment. 

“It is evident that the pick-up seen in other indicators including housing finance and new home sales is yet to flow through to building approvals," said Ms Lillicrap.

"With healthier conditions in the established home market, we are optimistic that we will see improvement in the new home market in the coming months."

Ms Lillicraps said recent government policy announcements in Western Australia has been working as they have quickly transferred to more approvals as demonstrated by a 35.5 per cent increase in multi-unit dwellings for the three months to October.

"This should flow through to more work on the ground in 2020,” said Ms Lillicrap. 

In seasonally adjusted terms, building approvals for the month of October 2019 declined in New South Wales (-16.4 per cent) and Queensland (-10.2 per cent).

Victoria increased by 5.7 per cent and South Australia increased by 14.7 per cent.

Western Australia offset previous monthly declines and increased by 11.5 per cent.

In trend terms, approvals in the Northern Territory declined by 11.1 per cent while the ACT increased by 3.1 per cent.

Master Builders Chief Economist Shane Garrett said the latest figures indicate the number of new detached houses receiving approval recorded its lowest result since January of 2013.

“Results from previous months had suggested that the housing market was in the early stages of recovery, with approvals, prices and lending starting to move in the right direction,” said Mr Garrett.

“Today’s figures are a warning as to how delicate that recovery actually is.

“Home building activity is reliant on new greenfield localities being opened up through investment in road and rail infrastructure, as well as the necessary utilities. 

“For the most part, we are still waiting for actual work to begin on the wave of major transport infrastructure projects that have previously been committed.. 

“The unnecessary delays here are placing the upturn in residential building at risk.” 

View the ABS figures on building approvals here.

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