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{{propApi.successMessage}} {{region}} Change locationACT building approvals lift but housing supply remains critically low
ACT building approvals lift but housing supply remains critically low
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“A total of 3,179 homes were approved in the ACT over the 12 months to August 2025 — 16 per cent fewer than during the same period a year earlier,” said HIA ACT & Southern NSW Executive Director, Geordan Murray.
“This starkly illustrates the challenge ahead for housing supply.
“Although we’ve seen a modest pickup in approvals this year, it follows a dismal 2024, which recorded the lowest volume of new home approvals since 2006.
“Detached house approvals have been steady in recent months, with total approvals for the three months to August sitting 18 per cent higher than the same quarter last year. It’s a welcome sign, but still nowhere near enough to meet the level of demand.
“There are early signs of improvement in the ‘missing middle’ segment of the market.
“A modest lift in approvals for townhouses, duplexes, and other medium-density homes is encouraging after several very difficult years.
“The ACT Government’s ‘missing middle’ reforms should help accelerate the delivery of these types of homes. However, the substantial tax on lease variations risks acting as a handbrake on progress.
“Only 1,795 dwellings were approved in larger apartment projects over the past year — 27 per cent fewer than in the previous year.
“While approvals in the first eight months of 2025 appear to be trending upwards, activity remains well below the levels needed to support population growth and improve housing affordability.
“To achieve the ACT Government’s goal of delivering 30,000 new homes by 2030, we need a substantial and sustained lift in approvals across all housing types.
“At the current pace, we are set to fall well short of this target,” concluded Mr Murray.
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