Approvals for private sector houses in Western Australia recorded the sharpest fall of 5.5 per cent nationwide as total dwelling rubber stamps dwindled in June.
Approvals for private sector houses in Western Australia recorded the sharpest fall of 5.5 per cent nationwide as total dwelling rubber stamps dwindled in June.
WA recorded the sharpest decline in green ticks for private sector houses after approvals fell by 5.5 per cent to 876 homes in June, according to latest date from the Australian Bureau of Statistics.
Total dwelling approvals increased 8.7 per cent to 1,094 houses, which was second smallest bump after South Australia recording an 0.8 per cent lift in approvals for the month.
Nationally, approvals for private sector houses decreased 1.3 per cent, after the 0.8 per cent rise recorded in May.
The total number of dwellings approvals nationwide dropped 7.7 per cent, coming off the back of the 20.5 per cent surge in May.
"The fall in total dwellings was driven by the volatile private dwellings excluding houses series, which fell 21.0 per cent,” ABS head of construction statistics said Daniel Rossi said.
"Approvals for private sector houses decreased 1.3 per cent, following a 0.8 per cent rise in May.”
"The average approval value for new houses has continued to increase year-on-year since April 2021. In June 2022 the average approval value for a new house was $409,900.
“Over the past 12 months this has risen by 12.5 per cent to an average of $461,200 in June 2023."
Monthly building approvals in WA supplied by the Housing Industry Association WA.
Detached house approvals dropped 2.8 per cent as multi-unit rubber stamps surged 198.3 per cent from the prior month, according to the ABS.
“On a quarterly basis, this leaves detached house approvals in Western Australia 23.4 per cent lower than in the June Quarter 2022, while multi-units were down by 74.2 per cent," Housing Industry Association WA executive director Michael McGowan said.
“These results show the impact of the RBA’s continual interest rate hikes are flowing through the market right at a time when our priority should be on increasing the supply of housing,” he said.
“We are starting to see a reduction in the pipeline of work as houses on site are completed, and while the shortage of skilled labour is still an issue, there is now capacity coming into the industry at the front end of the construction process.”
“Now is the time we need government at all levels to support the crucial delivery of housing supply by easing the way for delivery and not imposing any additional fiscal or regulatory hurdles."
The ABS also released its latest home loan refinancing statistics for the month of June, revealing the value of total refinancing between lenders fell 3.1 per cent.
Despite the value of total housing loan refinancing falling, it remained high at $20.2 billion in June, according to the ABS.
“Refinancing activity has remained at record highs in recent months, as borrowers continued to switch lenders amid interest rate rises,” ABS head of finance statistics Mish Tan said.
“The value of total refinancing between lenders was 12.6 per cent higher in June compared to a year ago.”
