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The Australian Bureau of Statistics today released its monthly building approvals data for February 2025 for detached houses and multi-units covering all states and territories.
“Home building activity across a number of Australian markets was already improving heading into 2025,” added Mr Devitt.
“Confidence has been improving on the back of strong population growth, near-record low unemployment, and recovering real incomes. Low rental vacancy rates and rising rents were bringing investors back to the market. And even before the RBA’s February rate cut, interest rates had been relatively stable since mid-2023.
“The RBA’s February rate cut will provide a welcome extra boost, but structural reforms are needed to properly address Australia’s housing affordability crisis.
“Medium-to-high density housing activity, in particular, has been around just half its required volumes over the last year, constrained by labour shortages, finance costs and punitive government taxes and regulations.
“This has funnelled improving market conditions back into the detached housing sector, but housing of all types needs to contribute to the Australian government’s target of 1.2 million new homes over five years.
“Reforms are required across multiple policy fronts, including skilled migration, tax, regulation, planning, approvals, land supply and infrastructure provision.
“Western Australia, Queensland and South Australia have been driving the improvement in home building volumes over the last year, while New South Wales and Victoria have been held back by prohibitively high land costs.
“These diverging fortunes are a vivid illustration of the brightest outlooks being dependent on the ability to provide affordable, shovel-ready land, adequately serviced with utilities, transport and other essential infrastructure,” concluded Mr Devitt.
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.
“Home building approvals in the three months to February 2025, in seasonally adjusted terms, were up by 48.4 per cent in South Australia, followed by +30.2 per cent in Western Australia, +28.1 per cent in New South Wales, and +24.1 per cent in Victoria, while Queensland was flat (+0.2 per cent) and Tasmania declined (-3.8 per cent). In original terms, the Northern Territory was more than double (+121.0 per cent) the equivalent quarter last year, while the Australian Capital Territory was down by 25.9 per cent.
HIA will continue to update you as we receive further advice and information on the ongoing transition from Domestic Building Insurance (DBI) to the First Resort Home Warranty Scheme (FRHWS).
The Housing Industry Association (HIA) has welcomed the decision to extend the lease of CSIRO's North Ryde fire testing facility by six months, saying the announcement provides valuable breathing space but does not resolve the long-term threat to Australia's building product testing capability.
“The strong pipeline of multi-unit dwelling approvals recorded during the second half of 2025 has begun to translate into construction activity,” said Geordan Murray, HIA Executive Director ACT & Southern NSW.
The Housing Industry Association (HIA) has welcomed Leader of the Opposition Angus Taylor and Shadow Minister for Skills and Training Senator Jacinta Nampijinpa Price to the HIA Skills Centre in Darwin this week to meet apprentices and discuss the workforce challenges confronting Australia's residential construction industry.