er20260730BullDwellingApprovalsJun

AUSTRALIAN DWELLING APPROVALS BULLETIN Unit approvals drive rebound

Key points • Total dwelling approvals rose 7.2%mth in June, with the annual pace strengthening to 8.9%yr. The result was driven by a rebound in unit approvals. • Private detached dwelling approvals remained resilient, rising 0.4%mth. Private unit approvals reversed recent weakness, increasing 17.8%mth, led by a sharp rise in high‑rise projects. • Queensland recorded the strongest result, while NSW and WA also posted gains. In contrast, SA and Victoria recorded declines. Total dwelling approvals • The value of residential building approvals rose 15.1%mth. However, a sharp fall in non‑residential approvals, led by the ‘other commercial buildings’ segment, saw the total value of building approvals decline 5.5%mth. 7.2%mth, • Recent RBA cash rate increases and still- elevated construction costs are expected to remain headwinds for the sector. 8.9%yr Past performance is not a reliable indicator of future performance. The forecasts given above are predictive in character. Whilst every effort has been taken to ensure that the assumptions on which the forecasts are based are reasonable, the forecasts may be affected by incorrect assumptions or by known or unknown risks and uncertainties. The results ultimately achieved may differ substantially from these forecasts.

Detached dwelling approvals hold at elevated levels Luka Belobrajdic Economist

Total dwelling approvals rose 7.2%mth in June, with the Building approvals – June 2026 annual pace strengthening to 8.9%yr. The result was well 3mth %chg* %yr above both Westpac’s and the market’s expectations of a 3mth avg latest May Jun May Jun 2.0%mth and 0.5%mth decline respectively. Unit approvals drove the upside surprise, while private detached dwelling Private houses 10, approvals remained above 10,000 for a sixth consecutive Private units 6, month. Public dwellings

Note that most figures in the charts and table are presented on Total dwellings 17, a rolling-three month basis to smooth out monthly volatility. Total dwellings, mthly* 18, – units in 'high rise'^ 3, Private detached dwelling approvals recorded a modest – units in 'low rise'^ 3, %mth increase in June following May’s strong result. While May was revised slightly lower to 2.4%mth (–0.4ppts), the Renovations, $bn annual pace strengthened to 15.8%yr. Detached dwelling Non–res., $bn approvals continue to show resilience despite higher interest *figures for ‘total dwellings mthly’ are monthly and mthly%ch, all others are rates and elevated construction costs. rolling 3mth avg and 3mth%ch; ^all sectors, Westpac estimates Sources: ABS, Westpac Economics

Private unit approvals reversed course in June, rising 17.8%mth and partially unwinding the weakness recorded over the previous three months. However, with May revised lower to –11.0%mth (–0.6ppts), the annual pace remained in contraction at –1.5%yr. High rise approvals again drove the headline move, with Westpac seasonally adjusted estimates across both private and public sectors rising 76%mth, while low mid rise approvals declined 7.3%mth.

Queensland recorded the strongest result, with private dwelling approvals rising 40.3%mth, supported by both detached dwellings and units. NSW also recorded growth (11.6%mth), driven by units, while WA approvals increased 9.9%mth following a sharp rise in unit approvals, as detached dwelling approvals fell in the month. In contrast, SA (–10.0%mth) and Victoria (–18.5%mth) recorded declines, reflecting weakness in unit approvals despite some resilience in detached housing.

In value terms, residential building approvals rose 15.1%mth, driven by an 18.0%mth increase in new residential approvals, partly offset by a 4.0%mth decline in renovation activity. The value of non residential approvals fell 24.7%mth partly unwinding a 40.4%mth surge in May. The decline was led by the other commercial buildings segment, which fell 88%mth on a non seasonally adjusted basis. As a result, the total value of building approvals declined 5.5%mth in June.

While unit approvals continue to drive month-to-month volatility, detached dwelling approvals have demonstrated meaningful resilience. Looking ahead…