Australian dwelling approvals lifted by 12% on the month in September, rebounding well above expectations (5%) after declining in July (-10.3%) and August (-3.6%). The result was driven by a wave of approvals in the volatile unit segment (23.7%) going through, but detached house approvals also put in a strong result (4.4%) to rise by their most since March 2024. Housing prices have picked up alongside the RBA's easing cycle, but the housing pipeline has been slower to respond.
National dwelling approvals rose by 12% to 17k in September, recovering most of the drop seen over the prior two months. That took approvals to 48k across the quarter, little changed (0.1%) from their total in the June quarter. Although unit approvals surged in September (23.7%), they rose only modestly for the quarter as a whole (0.7%), weighed by falls in July (-22%) and August (-6.8%). House approvals posted their strongest rise in 18 months in September (4.4%) but still softened slightly in the quarter (-0.3%).
Within the unit segment, larger developments will generate more approvals and so the high-rise category has been the key area of strength, particularly in Sydney, Melbourne and Brisbane. Townhouse and low-rise developments also look to have provided some support.
Detached approvals have disappointed in 2025, yet to fire despite the RBA easing rates and housing prices accelerating, up a further 1.1% nationally in October - their fastest gain in 2 years according to today's report from Cotality. The approvals data are simply too volatile to have any firm view as to whether not September's 4.4% rise signals a shift in momentum.
