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{{propApi.successMessage}} {{region}} Change locationHousing approvals rise at the start of 2025
Housing approvals rise at the start of 2025
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The Australian Bureau of Statistics today released its monthly building approvals data for January 2025 for detached houses and multi-units covering all states and territories.
“There were 16,580 residential dwellings approved in the month of January 2025, which is 6.3 per cent higher compared to December 2024,” added Mr Tapang.
“Total dwelling approvals in the three months to January 2025 were 14.0 per cent higher compared to the same quarter in the previous year, with detached approvals up by 6.1 per cent and multi-units up by 27.3 per cent.
“These increases in approvals signal positive momentum heading into the new year, with households slowly returning to the market and building new homes.
“New housing approvals had been strengthening on the back of low levels of unemployment, recovering real wages and ongoing strong population growth, even before the first interest rate cut was delivered.
“The rise in detached house approvals has been geographically dispersed, with Queensland, South Australia and Western Australia driving the national gain.
“Detached house approvals in in the three months to January 2025 were up in Western Australia by 29.2 per cent compared to the same time in 2024 in South Australia up by 27.5 per cent, and in Queensland up by 13.9 per cent.
“House approvals in New South Wales fell by 9.5 per cent over the same period because of the high cost of land and delivering new housing, particularly in Sydney.
“Victoria continued to see a flat result, with house approvals down by 0.9 per cent over the same period. This does not bode well for meeting ongoing growth in demand.
“Multi-unit approvals have increased from very weak levels. This needs to double from the 12-year lows of recent years to meet housing targets but constraints on land, construction and investment remain barriers.
“The rise in home building activity will be more evident in states and regions with lower land costs and lower taxes on new homes, while those with higher tax imposts will remain weak.
“Despite modest improvements in housing approvals, Australia continues to face a significant shortfall in housing supply,” concluded Mr Tapang.
HIA is calling on the Australian Government in the lead-up to the Federal Election 2025 to help remove barriers to new housing supply. To find out more about HIA’s Election Imperatives.
“Detached house approvals in the three months to January 2025 were up by 29.2 per cent compared to the previous year in Western Australia, followed by South Australia (+27.5 per cent) and Queensland (+13.9 per cent). The Northern Territory saw a large 86.5 per cent increase over the same period, albeit off historically low levels. The other jurisdictions recorded declines, led by the Australian Capital Territory (-50.4 per cent), followed by New South Wales (-9.5 per cent), Tasmania (-7.0 per cent) and Victoria (-0.9 per cent).
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Detached starts edge higher in Tasmania, but supply gap remains
“Tasmania recorded a modest improvement in detached home building at the end of 2025, as Australia’s housing construction sector showed clearer signs of recovery,” stated HIA Executive Director – Tasmania, Benjamin Price.
Multi-unit starts in NSW at their highest in 7 years
“There were over 10,000 multi-unit starts in New South Wales in the December quarter 2025, the highest since late 2018,” stated HIA Executive Director NSW Brad Armitage.
Lower housing taxes, not just interest rates, needed to reach 1.2 million target
“Australia commenced construction on 282,500 new homes in the first 18 months of the government’s goal of building 1.2 million new homes over five years. This is 77,500 homes behind schedule,” stated HIA Senior Economist, Tom Devitt.
HIA welcomes statewide Community Participation Plan
“The Housing Industry Association welcomes today’s announcement by the Planning Minister for a statewide Community Participation Plan,” declared Brad Armitage, Executive Director NSW.