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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.
“Moreover, January 2025 marked the second largest month for unit approvals in NSW seen since July 2017 - the height of the apartment boom,” added Mr Armitage.
The total number of units approved in the three months to January 2025 was 8,700 (in seasonally adjusted terms), which is 80.8 per cent higher compared to the previous quarterly period and 91.8 per cent higher compared to the same time in the previous year.
“It is great to see several of the underlying fundamentals for consistent supply of medium to high density housing starting to turn, which is a positive story for industry and households.
“Now we need to see the same level of recovery in detached approvals, particularly in greenfield areas.
“The total number of detached houses approved in the three months to January 2025 was 5,300, which is 3.5 per cent lower compared to the previous quarterly period and 9.5 per cent lower compared to the same time in the previous year.
“Unfortunately, detached home building has commenced the new year headed in the wrong direction.
“New South Wales’, and especially Sydney’s, significant shortfall in shovel ready land is becoming more dire by the day. We need to see the same level of urgency to approve apartment buildings in infill areas, applied to greenfield developments.
“We need to prioritise building more homes everywhere of every type if we are going to deliver the 377,000 homes we need to 2029,” concluded Mr Armitage.
Building approvals for dwellings in Canberra for the year to the end of March have shown some signs that the market may be turning the corner but still remain well below government targets.
“Australia has just seen its two weakest years of new home commencements in over a decade, meaning these ongoing shortages of skilled trades are not being caused by home building activity,” stated HIA Chief Economist, Tim Reardon.
“There were 48,620 new homes approved for construction in the first quarter of 2025, up by 20.8 per cent on a year earlier,” stated HIA Senior Economist Tom Devitt.
“The Housing Industry Association (HIA) calls on the newly elected Federal Government to make housing a first-order priority from day one, any delay or political grandstanding will only deepen the nation’s housing crisis,” HIA Managing Director Jocelyn Martin said today.