Australia’s seasonally adjusted dwelling approvals fell 1.1% month-on-month to a four-month low of 17,019 units in May 2026, following a 0.2% decline in the previous month and coming in slightly weaker than market expectations for a 1.0% drop, according to preliminary data. The decline was driven by a sharp fall in approvals for private sector dwellings excluding houses (-10.4% vs 4.0% in April), while permits for private sector houses rebounded 2.8%, reversing the previous month’s 0.4% decline. Across the states, approvals decreased in Victoria (-3.0%), Queensland (-8.8%), and Western Australia (-1.3%), but increased 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, though the pace of growth eased from 10.9% in April.

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