Steep Decline in Australia Building Permits Confirmed

Australia’s seasonally adjusted dwelling approvals fell 6.1% month-on-month to a seven-month low of 16,953 units in August 2026, matching the flash estimate and deepening from a 1.9% decline in the previous month. It was the fifth time of contraction so far this year, with approvals for private-sector dwellings excluding houses plummeting (-21.2% vs 0.8% in July) to 5,674 units. In contrast, private-sector house approvals rebounded (3.7%vs -1.9%) to 10,885 units. Across the states, dwelling approvals declined in Queensland (-22.5%), New South Wales (-17.3%) and Tasmania (-1.5%), but increased in South Australia (24.0%), Victoria (8.9%) and Western Australia (3.2%). On a yearly basis, building approvals rose 10.3%, easing slightly from a 10.9% gain in July.

Australia’s seasonally adjusted dwelling approvals fell 6.1% month-on-month to a seven-month low of 16,953 units in August 2026, exceeding market expectations for a 2% drop and following a revised 1.9% decline in July, according to preliminary estimates. The decrease was driven by a 21.2% slide in approvals for private sector dwellings excluding houses to 5,674 units. Meanwhile, approvals for private sector houses rose 3.7% to 10,885. Compared with a year earlier, total dwelling approvals increased 10.3%, with approvals for private sector dwellings excluding houses decreasing 2.1%, while approvals for private sector houses climbed 18.4%. In trend terms, total dwelling approvals declined 0.8% from the previous month to 18,202 units. Across the states, total dwelling approvals plunged month-over-month in Queensland (-22.5%), New South Wales (-17.3%), and Tasmania (-1.5%), but increased in South Australia (24.0%), Victoria (8.9%), and Western Australia (3.2%).

Australia’s seasonally adjusted dwelling approvals fell 3.6% month-over-month to 17,687 units in July 2026, reversing a 6.9% increase in June, final estimates showed. The decline was driven by a 4.2% drop in approvals for private sector houses to 10,199 units, while approvals for private sector dwellings excluding houses edged down 0.4% to 7,119 units. Compared with a year earlier, total dwelling approvals increased 9.0%, with approvals for private sector houses rising 6.0% and those excluding houses climbing 19.9%. In trend terms, total dwelling approvals rose 0.8% to 18,365 units. Across the states, total dwelling approvals declined in Queensland (-13.9%), New South Wales (-8.1%), and Western Australia (-0.3%), while increasing in Tasmania (15.2%), Victoria (9.7%), and South Australia (5.9%). The value of total residential building fell 4.9% to AUD 11.26 billion, while the value of total non-residential building increased 14.4% to AUD 9.93 billion.