Australian dwelling approvals rose 7.2% in June, defying expectations for a modest decline (-0.5%) as well as keeping their uptrend intact. House approvals reached their highest level in almost 5 years, despite higher interest rates and the uncertainty of the tax changes from the federal budget slowing housing market conditions.
Residential housing approvals were up 7.2% in June (18.3k), a much stronger result than the 0.5% fall expected. Over the June quarter, a total of 52.8k approvals went through - an increase of 3.5% on the March quarter. This kept the uptrend in approvals in place, but higher interest rates and the effect of the tax changes on housing investment in the federal budget remain the obvious headwinds to the residential construction outlook.
House approvals lifted 1.1% in June to 10.9k, a gain of 16% over the past year. This was also the 6th consecutive quarterly rise for house approvals (3.2%), which now stand at their highest levels since late 2021. The rising trend in house approvals has been evident across most states.
Approvals in the higher density or unit segment - volatile from month to month - lifted 17.7% in June to around 7.5k. For the quarter, unit approvals rose 3.7% - a rebound after falling in the March quarter (-8.9%).
While non-residential approvals fell in value by almost 25% in June, the data centre buildout drove a significant increase over the past 12 months. Over that period, these approvals totaled almost $94bn compared to $76bn in the 12 months to June 2025.
