Australian dwelling approvals saw their first monthly decline since January posting a 6.5% fall in June (vs -2.5% expected), reversing May's 5.5% rise. House approvals have trended up through the first half of the year - contrasting with unit approvals that remain on the lows for the cycle.
Dwelling approvals for June saw a 6.5% decline on the prior month, retracing to a 13.2k total. This was the first decline for headline approvals since January; however, despite the recent improvement, approvals remain at very low levels as higher interest rates and construction-related issues continue to impact residential construction activity. Across the June quarter, approvals came in at 40.8k, a 3.9% increase on the March quarter. Within this, house approvals advanced by 6.4% to 27.5k; by contrast, higher-density approvals declined by 1% to just 13.3k remaining on cycle lows.
Approvals for home alterations lifted by 10.2% in June to $1.2bn, continuing a volatile trend over recent months. Over the June quarter, the value of alteration work approved advanced by 5.8%. Renewed cost increases for materials and labour are likely the driving factor, with the Q1 national accounts reporting ongoing weakness in this activity.
