FX.co ★ Australia Building Permits Drop More Than Expected

In July 2025, the seasonally adjusted figure for total dwelling approvals in Australia experienced a significant decline of 8.2% compared to the previous month, reaching 15,769 units. This drop surpassed market predictions, which anticipated a 4.8% decrease, and came after a revised increase of 12.2% in June, according to preliminary estimates. The main contributor to this downturn was a notable decrease in approvals for private sector dwellings excluding houses, which plummeted by 22.3%, a stark contrast to the 33.5% rise noted in June. Conversely, there was a 1.1% uptick in approvals for private sector houses, rebounding from a 1.9% decline recorded the month before. Examining the data by state, there were decreases in approvals in New South Wales (-24.6%) and South Australia (-1.3%), whereas growth was observed in Tasmania (12.2%), Western Australia (11.8%), Queensland (5.9%), and Victoria (0.7%).