Australia’s seasonally adjusted dwelling approvals declined by 1.1% month-on-month to a four-month low of 17,019 units in May 2026, following a 0.2% fall in April and coming in slightly weaker than market expectations for a 1.0% drop, according to preliminary data. The overall decline was driven by a sharp fall in approvals for private sector dwellings excluding houses (-10.4% vs +4.0% in April), while approvals for private sector houses rebounded by 2.8%, reversing the previous month’s 0.4% decrease. By state, approvals fell in Victoria (-3.0%), Queensland (-8.8%), and Western Australia (-1.3%), but rose in New South Wales (+2.2%), South Australia (+10.9%), and Tasmania (+4.8%). On an annual basis, total dwelling approvals were 5.3% higher than a year earlier, although the pace of growth slowed from 10.9% in April.