Australian dwelling approvals fell a further 3.4% in April, exceeding the 1.5% decline expected, after plunging 10.5% in March. Approvals for houses (-0.9%) and units (-7.2%) fell, though both segments have risen strongly over the past year. The outlook for housing construction faces several uncertainties relating to the impact of the RBA's hiking cycle, cost pressures, and the tax changes announced by the federal government in the May budget.
Dwelling approvals declined by 3.4% in April to 16.7k, their third decline in the first four months of 2026. But despite that, approvals are still trending higher, the 3-month average was 17.8k - its highest since October 2021. That was due to a very strong rise of more than 30% in February.
House approvals posted their first fall (-0.9%) in 6 months, easing to 10.2k - but still up by 6.8% over the year. The result can largely be attributed to a decline in NSW where house approvals were down by almost 14%.
In the unit segment, approvals fell by 7.2% in the month to 6.5k. Notwithstanding several large falls in recent months, these approvals have risen by 16% over the year. Approvals on a 3-month average basis have been gently rising across most dwelling types, including high-rise.
Alteration approvals declined by 2.5% in the month to $1.3bn, up 10.5% over the year. Construction data through the March quarter showed that demand for alteration work increased solidly, expected to be confirmed in tomorrow's National Accounts.
