The number of new homes approved for construction rose in September, but the headline figure hides a split market: approvals for apartments and other medium-density housing bounced back while house approvals fell.

The headline numbers

According to the Australian Bureau of Statistics, released on Monday 2 November, seasonally adjusted total dwelling approvals rose 5.1% to 17,948 in September, after a 5.2% fall in August. That was 0.8% lower than a year earlier.

  • Private sector houses: down 5.3% to 10,432, though still 9.6% higher than a year ago.
  • Private sector dwellings excluding houses: up 16.6% to 6,579, after a 21.7% fall in August, and 20.5% lower than a year ago.
  • Trend: total approvals rose 1.3% to 18,705, and are 10.6% higher than a year earlier.

The states

Total approvals jumped 37.3% in New South Wales and 28.0% in Queensland, but fell 28.9% in Victoria, 25.7% in Tasmania, 8.7% in Western Australia and 3.2% in South Australia. Private house approvals fell in every state for which the ABS publishes the figure: South Australia (−7.8%), Victoria (−6.0%), New South Wales (−5.5%), Queensland (−5.1%) and Western Australia (−4.6%).

Value of work

The value of residential building approved fell 2.8% to $11.06 billion, with new residential work down 3.3% to $9.74 billion and alterations and additions up 0.8% to $1.32 billion. Non-residential approvals rose 45.9% to $7.96 billion, after falling 45.5% in August, taking total building approved up 13.0% to $19.02 billion.

The outlook

The figures predate Tuesday’s Reserve Bank rate rise to 4.85%. In its statement, the RBA said “higher interest rates and falls in housing prices and turnover are expected to weigh on growth in dwelling investment”, which suggests builders and developers should expect conditions to stay tough into 2027. For developers relying on pre-sales to secure construction finance, a weaker buyer market makes those targets harder to reach.

The ABS will publish October approvals on 1 December 2026.

Sources: Australian Bureau of Statistics, Building Approvals, Australia, September 2026 (2 November 2026); RBA Statement by the Monetary Policy Board (3 November 2026).