Master Builders Australia (MBA) chief executive, Denita Wawn, says that the November quarter building approval numbers from the Australian Bureau of Statistics reflect the latest string of economic pressures the building and construction industry faces.

The total number of approvals fell by 9% during November and is now 15.1% lower than a year ago.

“The latest building approvals data is concerning, and it’s clear that we are facing significant challenges which need to be addressed head-on if we want to weather the storm and see a sustainable recovery,” Denita says.

“For detached houses, there was a 2.5% decline during the month and a 22.7% drop for approvals of high-density homes. There have been signs that detached house building approvals had stabilised but recent months indicate that they are moving downwards.”

She adds that higher density home building approvals, which are particularly sensitive to interest rate movements, had shown momentum during 2021 but this is now on the way down.

“A number of factors are making it difficult for new home building, including rising interest rates coupled with labour and material shortages,” she says.

“We must not be complacent in addressing some of the systemic challenges on the supply side which continue to ripple through the economy.

“Builders continue to advocate for an increase to the migration cap and changes to the migration system that make Australia a more attractive place to live and work, and complementing this with improvements to domestic vocational education and training.”