New headwinds for construction
House approvals have picked up pretty solidly over the two years since the beginning of 2024.
It's essentially been just an increase in approvals in the booming Western Australia housing market to date.
Undersupplied Sydney and Brisbane appeared to be just shaping higher in the early part of 2026, but interest rate hikes in February, March, and May may well prove to quell the uptrend.
Apartment approvals have also picked up in Brisbane, Adelaide, and Perth over the past couple of years.
After a surge of unit approvals in February - in Melbourne and regional Queensland - saw over 19,000 approvals in a month, March saw a step back to a total of 17,300 approvals seasonally adjusted.
Detached house approvals have steadily picked up to be at the highest level since 2021, mostly thanks to Greater Perth.
Over the year there were around 198,000 dwellings approved, which is obviously some way behind the implied target of 240,000.
Overall, approvals have picked up over the past two years, but a series of interest rate hikes may now serve to kill off the uptrend.
Labour and materials shortages in regional Australia make further upside a challenge from here, while prices aren't rising in Sydney and Melbourne, making new unit projects a challenging sell in the current environment.
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