FX.co ★ Australia Building Permits Fall More Than Expected

Australia’s seasonally adjusted dwelling approvals fell 6.1% month-on-month to 16,953 units in August 2026, a seven-month low. The decline was sharper than market expectations of a 2% drop and followed a revised 1.9% fall in July, according to preliminary estimates.

The overall decrease was largely driven by a 21.2% slump in approvals for private sector dwellings excluding houses, which dropped to 5,674 units. In contrast, approvals for private sector houses rose 3.7% to 10,885 units.

On an annual basis, total dwelling approvals increased 10.3%. Approvals for private sector dwellings excluding houses edged down 2.1% year-on-year, while approvals for private sector houses surged 18.4%.

In trend terms, total dwelling approvals fell 0.8% from the previous month to 18,202 units.

By state, total dwelling approvals recorded steep month-on-month declines in Queensland (-22.5%), New South Wales (-17.3%), and Tasmania (-1.5%). In contrast, approvals rose in South Australia (24.0%), Victoria (8.9%), and Western Australia (3.2%).