Detached house approvals hit two-year high amid market recovery

Australian detached house approvals reached their highest level in two years, rising 6.1 percent to 9,890 in September 2024.

The latest Australian Bureau of Statistics data showed approvals jumped 12.9 percent compared to the same time last year.

HIA Economist Maurice Tapang said market conditions had improved since interest rates stabilized.

“It has been a year since the RBA last raised interest rates. Unchanged cash rate settings, supported by strong population growth, low unemployment levels and acute housing shortages, have helped lift consumer sentiment,” Tapang said.

Melbourne recorded twice as many detached house approvals as Sydney, despite similar population sizes.

Regional NSW saw increased approval activity as buyers sought more affordable options outside Sydney.

Multi-unit approvals rose 8.5 percent to 4,950 in September, though they remained at decade-low levels.

Western Australia led the states with a 49.9 percent increase in detached house approvals compared to last year, followed by South Australia at 21.1 percent.

The Australian Capital Territory recorded the largest decline at 20.9 percent.

Tapang said apartment construction needs to double to meet the government’s target of 1.2 million new homes over five years.

Building material costs have normalized and construction times have returned to pre-pandemic levels, though land prices remain high in Sydney.