- The number of dwellings approved rose 6.8 per cent in August (seasonally adjusted), defying expectations, according to the ABS
- New owner-occupier loan commitments fell 6.6 per cent in seasonally adjusted terms during August, while investors’ new loan commitments rose 1.5 per cent
- Across Australia, the number of dwelling approvals rose the most in Western Australia and South Australia
- Increased investor loan commitments were seen across most states, particularly Queensland (up 13.6 per cent), Western Australia
The number of dwellings approved rose 6.8 per cent in August (seasonally adjusted), defying expectations and ending a run of four consecutive monthly declines, while investor loans continued to grow.
Australian Bureau of Statistics (ABS) data released today also showed that new owner-occupier loan commitments fell 6.6 per cent in seasonally adjusted terms during August, while investors’ new loan commitments rose 1.5 per cent, continuing the unbroken growth since October 2020.
ABS director of construction statistics Daniel Rossi said the approved dwelling results for detached housing showed that despite the winding down of stimulus measures demand was still strong.
“Driven by record low interest rates, increased household savings and confidence in the housing market, private house approvals are 23.8 per cent higher year on year and 42.0 per cent higher than August 2019,” he said.
Across Australia, the number of dwelling approvals rose in Western Australia (21.0 per cent), South Australia (11.8 per cent), Victoria (10.5 per cent) and Queensland (4.0 per cent), in seasonally adjusted terms. Falls were recorded in Tasmania (-18.9 per cent) and New South Wales (-2.3 per cent).
HIA Economist Angela Lillicrap said dwelling approvals increased by 33.7 per cent in the three months to August, with detached approvals up 31.5 per cent and multi-unit approvals up by 38.1 per cent.
“The value of renovations approved also reached its second highest level on record. Households are spending money that typically would have been spent on overseas holidays, on improving their living spaces,” she said.
“Leading indicators, including HIA’s New Home Sales data, suggest that the detached market remains robust despite lockdowns. Sales in the three months to August 2021 were 15.4 per cent higher than at the same time in 2019 and 4.5 per cent higher than the same time in 2018.
“This will flow through to approvals data in the coming months and will continue to create employment opportunities into the second half of 2022.”
Matching the decline in new loan commitments from owner-occupiers, new loan commitments for first home buyers continued its seven-month downward trend, falling three per cent in August.
In contrast to the decline in owner-occupier lending, the value of new investor loan commitments increased, with the value of investor loan pledges was 92 per cent greater than a year earlier, and it was the largest since the series’ all-time high in April 2015.
Increased investor loan commitments were seen across most states, particularly Queensland (up 13.6 per cent), Western Australia (up 7.2 per cent) and Victoria (up 1.9 per cent). New South Wales recorded the largest fall of 3.2 per cent.