High Inflation Hits NSW Building Activity - Latest Building Approvals and Inflation Data

Building Approvals for August: 

The latest ABS Building Approvals data for August shows that high inflation is hitting building activity and should sharpen bullders' concerns that the Federal Government's economic management is failing. 

In NSW, overall building approvals fell by 17.3% in August, including a 4.5% drop in approvals for detached dwellings. Nationally, approvals for detached houses rose by 3.7% but approvals for new apartment projects fell by more than 20%. 

Other national building approvals headline stats include: 

• Total dwellings approved fell 6.1% to 16,953.
• Private sector houses rose 3.7% to 10,885, while private sector dwellings excluding houses fell 21.2% to 5,674. 
• The value of residential building fell 0.6% to $11.30b.
• The value of non-residential building fell 44.8% to $5.53b.

Inflation Data for August: 

The latest news on inflation rings further alarm bells as headline inflation jumped from 3.5% to 4% in August with underlying inflation remaining stubbornly high at 3.6%, well above the Reserve Bank’s target range.

Construction costs (labour and material costs) for new builds are up 5.4%, running well ahead of inflation. 

Housing and transport inflation remain the major drivers of inflation driven by high labour and material costs and escalating fuel costs. 

Inflation By Group - Housing Inflation Continues to be Highest

Dwellings approved, states and territories (seasonally adjusted) 

Value of building approved by building type (nationally)