Australian Bureau of Statistics data shows approvals for dwellings in Australia has fallen 6.1 per cent, with the biggest drop for approvals in medium and high-density homes. Housing experts say the decline is being caused by rising construction costs and increased risk.
Australian Bureau of Statistics data shows approvals for new homes and apartments fell 6.1 per cent in August compared with July.High construction costs and labour shortages is causing approvals for new dwellings to fall across Australia, according to housing experts.
Mr Lawless said apartment building construction was becoming increasingly costly for developers and builders. "At the moment we're seeing total dwelling approvals that are tracking at 13,000 to 14,000 a month … so we're nowhere near that run rate target ."University of Sydney professor of urban regional planning Nicole Gurran said there's often no urgency to put high density buildings forward for approval because of their complexity.
"I think trying to compare that period of time to now is very different because construction costs were a lot lower, profitability was quite strong."Australian Housing and Urban Research Institute managing director Michael Fotheringham said that having a steady pipeline of projects also contributed to approval numbers.
"For some of those properties, the feasibility of that development is not what it was when they first purchased the land because costs have gone up," he said.However, Dr Fotheringham said while the data showed approvals have been lower in previous years, they have remained overall mostly stable. "The heightened costs we have, particularly around material supply and workforce at the moment, are system challenges that need to be addressed over time."Professor Gurran said government land developers can play a big role in de-risking sites to moderate the market and make sure there was an ongoing moderately priced supply of land for development.
Dwelling Approvals Australian Government Construction Apartments Houses Housing Crisis Corelogic Tim Lawless Master Builders Association Alex Waldren Nicole Gurran Australian Housing And Urban Research Institute Michael Fotheringham
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Australia’s population surpasses 27 millionThe Australian Bureau of Statistics has officially announced Australia’s population has surpassed 27 million.
Read more »
Bureau of Meteorology apologises after accidentally sending a tsunami warning for Australian east coastThe bureau apologised and said there was no threat after the tsunami alert was sent in error to users of the BOM Weather app between 11am and 12pm today.
Read more »
Australian house prices: All sectors of the Australian economy are being hit by housingAustralia’s housing woes are causing policymakers, investors and households to make decisions they might not ordinarily make. But to fix it, we need to escape a vicious cycle.
Read more »
Tickets on sale: It’s the Big Australian vs the Australian governmentSo intense has the standoff between BHP and the Albanese government become that the parties are even contesting who started the fight.
Read more »
Tickets on sale: It’s the Big Australian vs the Australian governmentSo intense has the standoff between BHP and the Albanese government become that the parties are even contesting who started the fight.
Read more »
Tickets on sale: It’s the Big Australian vs the Australian governmentSo intense has the standoff between BHP and the Albanese government become that the parties are even contesting who started the fight.
Read more »